According to an official from Germany’s central bank Bundesbank, Eurozone is expected to see its economy grow by 1.1% in 2020. Economic growth in the Eurozone is expected to receive some support via fiscal easing measures in the region.
These comments were made by Burkhard Balz, a member of Bundesbank’s executive board, at a financial forum in Hong Kong earlier today. Balz also estimates inflation to weaken slightly from 1.2% in 2019 to 1.1% this year on the back of a decline in energy prices. However, he expects inflation to rise to 1.6% in 2022, supported by an overall improvement in economic activity.
The Eurozone has seen weak economic growth through 2019 as a result of global trade tensions, Brexit uncertainties and an overall decline in global economic growth. In the coming months, markets are optimistic that conditions could improve once the US-China phase one trade deal gets signed and Brexit negotiations progress well.