UBS warns growth in S. Europe could hit major snag

FRANK RUMPENHORST

People from Spain, Italy, Portugal and Greece lift their flags while assembling in front of the euro sculpture at the European Central Bank (ECB) in Frankfurt/Main, Germany, 21 November 2011. They take part in a Monopoly game under the motto 'Grosses Zocken bei der EZB' ('Great gambling at the ECB').

UBS warns growth in S. Europe could hit major snag


Share on Facebook
Share on Twitter
Share on Google+
Share on LinkedIn
+

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.

Share on Facebook
Share on Twitter
Share on Google+
Share on LinkedIn
+