Political Uncertainty Could Threaten Europe’s Benign Outlook

Though Euro-area economic growth appears to have extended into the second quarter, political uncertainty could mar the region’s benign economic forecasts, states Goldman Sachs. Huw Pill and team at Goldman Sachs highlighted the positive impact of the euro and oil price weakness that’s still in the pipeline in Europe in their May 21, 2015 research report titled: “Europe’s outlook: The recovery broadens but political risks linger.” Pickup in economic growth in Europe The Goldman Sachs analysts point out that, thanks to the GDP rising by 0.4% Q/Q in the first quarter and business surveys pointing to continued recovery in the…