A UBS report published on Monday warns that Europe’s southern periphery will soon see growth deceleration.
Although GDP growth in Spain (3,1%), Portugal (2,7%) and Italy (1,5%) surpassed expectations over the course of 2017, growth is about to decelerate projects UBS.
The economic fundamentals across the three states suggest underperformance, including the ageing of the population, the projected tightening of monetary policy and a strong Euro.
As young people leave the European south, governments are under increasing financial pressure to meet the cost of an ageing population. Moreover, the surging value of the Euro is eroding the competitiveness of the European south, acquired through years of tough internal devaluation programmes.