Euro-area economic growth in 2011 will slow “modestly” because of tightening fiscal policies, before improving next year on a recovery in investments and consumption, UniCredit SpA economists said.
The European Central Bank’s plan to step up dollar lending to the region’s banks is only a temporary solution to easing funding needs and solving the region’s debt crisis, said Marco Valli, chief euro-area economist at UniCredit Group in Milan.
The euro-area’s fastest economic growth in three years probably won’t be enough to stop Mario Draghi from easing monetary policy.
Mario Draghi’s asset-purchase plan to ward off deflation may be lacking one key element: enough assets to buy.
Growth in Europe and Japan probably accelerated in the first quarter and American retailers enjoyed another solid month in April, indicating the world economy is making headway.
Valli Says Fed Will Pull Out All the Stops