In the monthly economic update video for eZonomics, ING senior economist Martin van Vliet tells how the 3% forecast is a rise on last year and stronger than the average growth of the past six years. He says Greece’s return to the bond market for the first time since its bailout in 2010 is a further sign of the crisis easing. But threats to growth remain.
Tensions between the West and Russia
Van Vliet says the crisis in the Ukraine and the sanctions imposed on Russia have not yet had any meaningful impact on global activity.
“But escalation of tensions between the West and Russia remains a threat to our base view of a continued recovery.”
Eurozone recovery “remains fragile”
Van Vliet details three reasons why the Eurozone recovery remains fragile.
He says economic growth is still too slow to generate enough jobs to make “a serious dent” in unemployment.
“Moreover, public debt in some Southern European countries still seems unsustainably high. And, thirdly, the backdrop of low inflation makes it more difficult for these countries to reduce their debt burden.”