Eurozone: Economic prospects have become more encouraging – Wells Fargo
The prospects for the Eurozone economy have become more encouraging as COVID-19 case growth continues to stabilize and activity and confidence indicators point to a less severe decline in the second quarter than previously anticipated, explained economists at Wells Fargo.
Key Quotes:
“High frequency mobility data also suggest that the economy has now recovered about 75-80% of the output from the COVID-19-related decline, which could also be consistent with a faster bounce back in Q3-2020.”
“We have become more constructive on the Eurozone economy, under the assumption that the COVID-19 pandemic remains under control and data continue to improve. We now look for a smaller Q2 GDP fall and faster Q3 GDP rebound. We have also become less pessimistic on 2020 overall, and have revised our forecast to a smaller 7.7% GDP decline for full-year 2020 GDP, compared to the 8.9% contraction we forecasted a month ago.”
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
