EFN Report Summer 2010: Economic Outlook for the Euro Area in 2010 and 2011
The world economy is recovering, largely driven by upswings in most emerging market economies. Although growth in these regions is apparently calming down at present, the euro area will still be benefiting from the momentum of a healthily expanding world trade for much of the remaining year. Rising exports will be the main driver of the recovery in the euro area during the first half of 2010. We expect euro area GDP to grow by around 1.0% in 2010 and 1.6% in 2011, respectively. Due to this increase in external demand, the growth rate of the industrial production index has also gained momentum: during 2010 the industrial production index is expected to grow around 7%, though only at about 3% in 2011.