Outlook 2016: the eurozone is still facing headwinds
December 21, 2015 8:51 am
21 December 2015: Political instability, inflation, possible QE extension; these are some of the issues the eurozone will have to address in 2016. There’s a number of battles ahead for the global economy, with inflation and commodity prices the main enemies for central banks.
Mario Draghi is likely to have more weapons at his disposal with a bigger basket of monetary tools and the 60 billion euro budget expected to increase. But Draghi cannot possibly combat the price of oil – the main problem for inflation. Other battles ahead include political instability with Greece still plagued by austerity, France’s upcoming election diluting Hollande’s political powers and the UK’s EU referendum. But one unlikely bright spark for 2016 could be the Syrian refugee crisis, as many of these people are of working age and with much of Europe facing an aging demographic – this could prove to be an advantage.
21 December 2015: Political instability, inflation, possible QE extension; these are some of the issues the eurozone will have to address in 2016. There’s a number of battles ahead for the global economy, with inflation and commodity prices the main enemies for central banks.
Mario Draghi is likely to have more weapons at his disposal with a bigger basket of monetary tools and the 60 billion euro budget expected to increase. But Draghi cannot possibly combat the price of oil – the main problem for inflation. Other battles ahead include political instability with Greece still plagued by austerity, France’s upcoming election diluting Hollande’s political powers and the UK’s EU referendum. But one unlikely bright spark for 2016 could be the Syrian refugee crisis, as many of these people are of working age and with much of Europe facing an aging demographic – this could prove to be an advantage.
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