Report
The euro zone's cyclical problem in 2024: Growth is weak for many reasons, but the fiscal deficit must be reduced
The weak growth in the euro zone in 2024 is the result of weak global trade, restrictive monetary policy and rising savings rates. Normally, weak growth would be partly offset by an expansionary fiscal policy, but as the euro zone is emerging from a highly expansionary fiscal policy (due to COVID), it was decided to switch to a restrictive fiscal policy from 2024, with a reduction in the fiscal deficit and the public debt ratio. Fiscal policy will therefore be pro-cyclical in 2024, which is unusual and will reinforce the weakness of growth.
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Natixis
Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.
Patrick Artus
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