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.
https://www.neweurope.eu/article/ubs-warns-growth-s-europe-hit-major-snag/