European Sovereign Debt Crisis took place in 2009-2011 identified as the depression phase of the European economy, which lead to the introduction of the QE pro gramme by the ECB in the year of 2012. The QE programmer was schedule to end in the year of 2017, but because the ECB feel that the European economy is not yet compliantly stable they decided that they will continue with the QE program but will cut it from 60 bn to 30bn. This will continue to propel the European economy and this can seen from the constant positive GDP growth data coming at 0.6% during Q1 to Q2 and at the end of Q2 we got a growth rate of 0.7% ,than Q3 followed with a 0.6% growth rate.Click to view GDP Growth Historical Data
The ECB succeeded in decreasing inflation from a high of 2.6 % in 2012 to a rate of 1.8 in the beginning of the year 2017 we also see that the ECB succeeded throughout 2017 to keep the inflation rate under the inflation target of 2% and is currently at a rate of 1.4 last reported on December 2017.Click to View inflation data
Propelled by positive productivity growth from the largest economies in the Euro zone being France,Spain,Germany and Italy productivity in the European economy has been on a steady rise with great prospects of continuity, this was also confirmed in a Speech by Peter Praet, Member of the Executive Board of the ECB on the 30 November 2017 Click to view speech “he states that the euro area has been expiriance 18 quarters of positive growth and the short-term economic indicators all point to a continued economic upswing with above-trend growth.”
Debt and income
Disposable Personal Income In the Euro Area increased to in the second quarter of 2017 from 1693338 EUR Million in the first quarter of 2017 Click to view Disposable personal income.We should also pay attention to the raise in consumer spending while the EU income increased we also had an increase in consumer spending by a greater margin in the third quarter of 2017, This might indicates that EU citizens are taking on more debt.
My view on the Euro Economy
With the current ECB interest rates at 0% and the current inflation rate the ECB has, the is no reason to raise rates but instead encourage its citizens to increase their spending, therefore we expect the European economy to continue growing with a bullish market predicted for the European currency for 2018