Worries Over Stronger Euro
Worries Over Stronger Euro

Worries Over Stronger Euro

Worries Over Stronger Euro

Ever since December last year, when it reached its low point, almost at parity with the dollar, the euro has not stopped rising. At the beginning of 2017 it was around $1.04: on Tuesday it managed at one point to break through the 1.20 threshold. The single currency’s sharp appreciation is causing concern in Europe, given that a very strong euro is not what the region’s economy needs at the moment, theconrer.eu reported. A strong euro makes exports more expensive and, as it makes imports cheaper, puts at risk the ECB’s plans for inflation to reach 2% (now at 1.5%) in the eurozone. In this respect, an economic think tank has predicted that “the euro’s appreciation would justify cutting estimates for inflation by between 30 and 40 basis points in 2018 and 2019.” Apart from the fact that the strong euro could drag on growth in the eurozone, something which explains the stock markets’ apathy over the last few months. The same think tank has evaluated the impact on GDP of the strong euro at between 20 and 30 basis points.


Short URL : https://goo.gl/Lk2eJZ
  1. https://goo.gl/2h5dhp
  • https://goo.gl/wReSuK
  • https://goo.gl/Jv6z2S
  • https://goo.gl/CqR6om
  • https://goo.gl/S1qjz6

You can also read ...

Close to 40% of digital transformation initiatives will be supported by AI capabilities.
The digital economy in Asia-Pacific, or APAC, is expected to...
An electronic stock indicator of a securities firm in Tokyo.
As investors come to terms with the impending end of easy...
Most economists would agree that Italy needs faster economic growth if it is to resolve its public debt  and banking-sector problems in an orderly manner.
Italy’s economy is growing again, but it’s still the worst...
Maersk is expanding its competitive universe to include different types of companies.
The world’s largest container company will start looking for...
Lloyds Profits Miss Forecasts
Lloyds Banking Group PLC raised its 2017 dividend by 20% and...
NZ Says Pacific Trade Deal Will Boost GDP
New Zealand estimates a Pacific trade deal would boost its...
CBs May Top Inflation Targets
Not only will central banks meet their inflation targets, they...
Pak Current Account Gap Widens
Pakistan’s current account deficit widened 28.74% on a month-...

Add new comment

Read our comment policy before posting your viewpoints