Ratings agency Moody’s has upgraded the eurozone’s GDP forecast, noting significant improvement in several individual member states, and has downgraded US GDP growth.
The growth is being driven by consumer confidence, and strong export performance, even compared to China says the Director of the Center for European Policy Studies.
“The Eurozone has been on a good path already for a year. We have now to acknowledge that austerity measures have, in a first phase, a negative impact on growth, but afterwards they pay a dividend, sometimes even a ‘double digit’ one. It’s typical for the Eurozone to experience a bit stronger growth than expected. The problem is now that we have topped expectations. And that’s why, from now on, we really have to be careful,” said Daniel Gros.