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Strong Economic Recovery with Bright Growth Prospects for 2018
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The Western European economy will continue its recovery with economic growth gaining momentum amid continuing political uncertainty. Frost & Sullivan expects 2017 GDP growth to reach 2% with slight moderation of 1.8% in 2018. Germany is expected to continue its strong economic growth supported by increased foreign investment inflows as well as strong manufacturing sector performance. Growth is likely to be slowing in the first half of 2018 due to weakened governance. The Social Democratic Party (SDP) of Germany has agreed to hold negotiations with Angela Merkel to form a new coalition government. However, a new coalition government is likely to be formed only in mid 2018. Economic activity is also picking up in France with buoyed investment and industrial growth. Italy has gained back its business confidence supported by strong improvement in exports and booming new manufacturing orders. Spain revises its growth forecast from 2.6% to 2.3% due to the political uncertainty in Catalonia. In the United Kingdom, exports surged driven by a weaker pound sterling. However, the uncertainty around the Brexit restrained growth at 1.6% in 2017 which was below the regional average. The year 2018 is to be characterized by fall in productivity, slowdown in investment and anticipated cuts in public spending dampening economic growth. Country Coverage—Western Europe• France• Germany• Italy• Spain• The United KingdomYearly, Quarterly, and Monthly Coverage• Yearly Data: 2012–2021• Quarterly Data: Q1 2012–Q4 2019• Monthly Data: January 2012–December 2017
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