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19 Mar 2015
Euro Zone Growth Outlook Upgraded Amid Low Oil, QE - OECD
FXStreet (Mumbai) - The Organization for Economic Co-operation and Development (OECD) upwardly revised its 2015 growth outlook for the euro area on Wednesday, citing the positive impact of low oil prices and monetary easing.
The organization now expects the 19-nation bloc to grow 1.4% of GDP this year, up from the 1.1% hike anticipated in the previous estimate from November.
As for next year, the growth is now estimated to reach 2.0%, up from 1.7% predicted in November.
The OECD stated in its latest Interim Economic Assessment, "Low oil prices and monetary easing are boosting growth in the world's major economies, but the near-term pace of expansion remains modest, with abnormally low inflation and interest rates pointing to risks of financial instability,"
"The euro area's fiscal rules are essential to the stability of the monetary union, but their complexity has created uncertainty in recent years, not least because of the repeated resort to ad hoc extensions of deadlines for corrective budgetary action,"
"Such extensions have been used 12 times since 2009 ... An open discussion is needed of how to make the rules more effective and more credible."
The organization now expects the 19-nation bloc to grow 1.4% of GDP this year, up from the 1.1% hike anticipated in the previous estimate from November.
As for next year, the growth is now estimated to reach 2.0%, up from 1.7% predicted in November.
The OECD stated in its latest Interim Economic Assessment, "Low oil prices and monetary easing are boosting growth in the world's major economies, but the near-term pace of expansion remains modest, with abnormally low inflation and interest rates pointing to risks of financial instability,"
"The euro area's fiscal rules are essential to the stability of the monetary union, but their complexity has created uncertainty in recent years, not least because of the repeated resort to ad hoc extensions of deadlines for corrective budgetary action,"
"Such extensions have been used 12 times since 2009 ... An open discussion is needed of how to make the rules more effective and more credible."