EUR: Moody’s raise forecasts as eurozone expects further growth in the future

Moody’s began yesterday by raising its growth forecasts for France, Germany and Italy, and suggested that the eurozone can expect to grow ‘above potential’ throughout the rest of this year and next. Indeed, it said it expects the eurozone to grow by 2.1% in 2018 and 1.9% in 2018, compared to 1.7% in 2016.

There was more good news, as economic sentiment for the eurozone came in higher than forecast in August. The European Commission’s sentiment index increased from 111.3 in July to 111.9 against an expectation that it would remain the same. This is the highest it has been for ten years.

Today is a relatively busy day for eurozone economic data, as the Spain and German retail figures are set to be released, as well as unemployment figures from Germany.