Currency depreciation against the US dollar and the low level of the price of crude oil will help to gradually strengthen the economic recovery in the Euro Area. EUROFRAME, the network on ten independent European research institutes, is projecting the Euro Area GDP to grow by 1.5 and 1.9 per cent in 2015 and 2016, respectively.
According to the projection published in the latest Economic Assessment of the Euro Area, world GDP growth is expected to accelerate to 3.7 per cent and 3.8 per cent in 2015 and 2016, respectively. Moderate growth is expected for both emerging and advanced economies for this year and next, the US and the UK being positive exceptions.
EUROFRAME Winter 2014/2015 report contains a box focusing on the economic impact of lower oil prices. It is argued that permanently lower oil prices could raise growth in the advanced economies substantially, by as much as 1 percentage point, whereas in the case of only temporarily reduced oil prices the impact on growth would be much less significant.
Download the entire Winter 2014/15 report from the EUROFRAME site.