Ifo, KOF, and Istat released their joint quarterly economic projections for the Eurozone
Q3 growth is seen slowing marginally to 0.5%, and year-on-year terms growth is seen at 2.6% (Q1), 2.5% (Q2), 2.3% (Q3).
The drivers of growth in the economy are investments and rising capacity utilisation rates. Meanwhile, their forecast expect inflation to increase by 1.3% by an annual comparison, followed by 1.6% in Q2 and 1.7% in Q3.
The risks to the forecast include rising interest rates - which will affect investment - and the appreciation of the euro for exports. They also mention that geopolitical risks from US tariffs, Brexit, Italy's election results and Middle East tensions could also have a negative impact.
The projections listed here are assuming Brent at $66 per barrel and EUR/USD at 1.2300.
