The euroarea periphery countries continue to show improvements in sentiment, although a setback in some indicators in September underlines the fragility of the recovery. Sovereign spreads have continued to tighten on the back of a decline in political risk. The improvement is slowly becoming visible in hard data too. There are tentative signs that the recession is coming to an end in most peripheral countries.
We look for a continued gradual improvement helped by the global recovery. The return of confidence is expected to result in a slow recovery in domestic private sector demand next year. The recovery is supported by fading headwinds from fiscal tightening and a perceived decline in political risks. Nevertheless, the short-term outlook remains challenging.
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Euroarea Periphery Countries Continue To Show Improvements
Published 10/08/2013, 08:17 AM
Updated 05/14/2017, 06:45 AM
Euroarea Periphery Countries Continue To Show Improvements
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