ECB: US policy uncertainty, Brexit and China rebalancing to keep outlook clouded

The European Central Bank (ECB) published its quarterly economic bulletin this Thursday, suggesting that Euro area economy is expected to see robust growth in Q1 2017.

Key Highlights:

Fiscal space can be generated by a more growth-enhancing composition of budgets

ECB stimulus has led to tangible improvements in borrowing conditions for the real economy

US policy uncertainty, Brexit and Chinese rebalancing will keep the outlook clouded

Recent data has increased confidence that the expansion will continue to form

Economic recovery in the Eurozone is steadily firming

May see robust growth momentum in Q1

The pass-through of the ECB's monetary policy measures is supporting domestic demand and facilitates the ongoing deleveraging process