20 Jun 2014
Growth finally picking up in southern Eurozone countries - BNP Paribas
FXStreet (Łódź) - BNP Paribas economist Thibault Mercier stresses that southern Eurozone countries, such as Spain Greece or Portugal, which experienced a severe contraction during the last several years, are finally beginning to see a pickup in growth thanks to an upturn in domestic demand.
Key quotes
"The rebound in domestic demand has several support factors. First, it was made possible by renewed confidence in the unity of the Eurozone, which was largely fostered by ECB actions."
"Productive investment recovered as capital began flowing into the peripheral countries again and financing conditions eased."
"Renewed household confidence also revived consumer spending."
"Most importantly, job market conditions have improved."
"Lastly, household purchasing power benefits from low inflation, which is not only a reflection of sluggish consumption, but also of the price adjustments that were demanded from these countries."
"It will be challenging for these countries to return to decent activity and employment levels while maintaining or even increasing the foreign trade surpluses that emerged during the recession."
"At a time when renewed growth and the approach of general elections makes it all too easy to maintain the status quo, it is vital for these countries to continue pushing through reforms."
Key quotes
"The rebound in domestic demand has several support factors. First, it was made possible by renewed confidence in the unity of the Eurozone, which was largely fostered by ECB actions."
"Productive investment recovered as capital began flowing into the peripheral countries again and financing conditions eased."
"Renewed household confidence also revived consumer spending."
"Most importantly, job market conditions have improved."
"Lastly, household purchasing power benefits from low inflation, which is not only a reflection of sluggish consumption, but also of the price adjustments that were demanded from these countries."
"It will be challenging for these countries to return to decent activity and employment levels while maintaining or even increasing the foreign trade surpluses that emerged during the recession."
"At a time when renewed growth and the approach of general elections makes it all too easy to maintain the status quo, it is vital for these countries to continue pushing through reforms."