Euro Area Policies: 2016 Aticle IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Euro Area
July 8, 2016
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This 2016 Article IV Consultation highlights that the recovery in euro area has strengthened recently. Lower oil prices, a broadly neutral fiscal stance, and accommodative monetary policy are supporting domestic demand. However, inflation and inflation expectations remain very low, below the European Central Bank’s medium-term price stability objective. Euro area GDP growth is expected to decelerate from 1.6 percent in 2016 to 1.4 percent in 2017, mainly owing to the negative impact of the U.K. referendum outcome. Growth five years ahead is expected to be about 1.5 percent, with headline inflation reaching only 1.7 percent.
Subject: Banking, Fiscal policy, Fiscal space, Fiscal stance, Inflation, Labor taxes, Macrostructural analysis, Prices, Structural reforms, Taxes
Keywords: banking sector risk, CR, EU institution, euro, Europe, Fiscal space, Fiscal stance, Global, growth, headline inflation, Inflation, inflation expectation, inflation outlook, ISCR, Labor taxes, member state, single market, Structural reforms
Pages:
70
Volume:
2016
DOI:
Issue:
219
Series:
Country Report No. 2016/219
Stock No:
1EUREA2016003
ISBN:
9781498353298
ISSN:
1934-7685
