Growth in Europe to stay weak in 2015: report

ANKARA – Economic growth in the Euro area is forecast to remain weak in 2015 despite mild improvement, according to a report published by Europe’s leading economic research institutes.

The prediction came in a report published by the Ifo Institute (Munich), INSEE (Paris) and ISTAT (Rome) on Monday.

The report stated: "Economic growth in the euro area is expected to accelerate mildly, but remain weak.

"It will amount to 0.3 percent in the first and second quarters of 2015 respectively, following 0.2 percent in the fourth quarter of 2014."

A robust growth performance is expected from Germany and Spain in 2015 with moderate expansion in France and weak development in Italy, according to the report.

- Weak prospects

In line with weak growth prospects, unemployment is expected to top Europe's economic agenda for a considerable time amid very low inflation.

The report saw 0.1 percent inflation in the first quarter of 2015 and 0.2 percent in the second quarter, supposing oil prices hover around $56 per barrel and that the dollar-euro exchange rate fluctuates around 1.21.

The report noted: "On the upside, both the fall in oil price and the depreciation of the euro provide a stimulus to internal and external demand. 

"On the downside, risks are related to the outcome of the upcoming parliamentary elections in Greece and its possible implications for the stability of the euro zone,” the report said.

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