Swiss SECO lifts growth outlook for euro area

Economy 6/20/2017, 8:19 AM
Swiss SECO lifts growth outlook for euro area

The average price of Brent oil is seen growing from $43.8 per barrel, registered for 2016, to $52.4 this year and declining to $52 per barrel in 2018, the State Secretariat for Economic Affairs (SECO) of Switzerland said on Tuesday. The outlook compares to $55 this year and next, from the estimate published in March. In the quarterly economic forecasts, the government’s expert group said domestic growth in 2017 may come in at 1.4% or 0.2 percentage points less than in the previous update, while that the rate of 1.9% for next year is unchanged. The Eurozone's expansion was bolstered by 0.2 points for this year, to 1.8%, driven by Germany.

The outlook for the monetary union's largest economy was improved at the same pace, to 1.8%. The euro area will grow 1.6% next year, and Germany's rate will be 1.5%, both unchanged, the report said. The rise in the gross economic product of the United States is seen flat at 2.2% this year and next. Forecasts for the BRIC bloc, consisting of Brazil, Russia, India and China, remained at 5.5% and 6% for 2017 and 2018, respectively. The most populous country is seen lifting GDP by 6.4% and 6%, the same as in March. 

Japan's economic growth forecast was improved by 0.3 points for this year, to 1.2%, after which it may slow to 0.6%, as estimated before, analysts added. Trade-weighted exchange rate of the franc is expected to slip 0.9% this year, a downward revision of 0.4 points, and 1.8% in 2018, which is 0.2 points below the figure in the previous outlook.

TeleTrader Newsroom / IT