Graph of the week: Eurozone recovery remains on track

The past few months brought some worrying economic news, mostly about the deteriorating situation in China. This also genereated increasing concerns about the outlook for the European economy. However, recent data suggest the economic recovery in the Eurozone is holding up quite well.

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Business confidence in the Eurozone continued to improve in October. The combination of low interest rates, low commodity prices, a weak euro and strengthening housing markets is keeping the recovery on track. At least for now, Eurozone business leaders are not all that bothered about the news out of China, even if some temporary Q3 weakness cannot be excluded.

In this respect, the Belgian economy is a nice case in point. Economic growth slowed down in Q3, most likely because of weaker manufacturing activity. That said, improving business confidence suggests the economy is picking up again in Q4.

On a related note, signs of continuing recovery raise some question marks about the remarkable candidness of ECB-president Draghi about his plans to add to monetary stimulus in December.

This article was written by Bart Van Craeynest

on 30 October, 2015 about Belgium, Blogs, Europe

On completion of his studies in economics at UFSIA, Bart Van Craeynest started work as an economist in the financial sector. In this capacity he has been following economic developments in Belgium and internationally and the impact of the latter on the financial markets for over 15 years. Following a long period at a large bank, he became chief economist at a Belgian financial institution in 2010. Bart Van Craeynest has held the position of chief economist at Econopolis since 2015. He is co-responsible for the economic line of the house and hence closely involved in developing the investment strategy.