In addition to the forecast for the euro area for 2019 and 2020, which is based on the individual forecasts of the individual institutes, the outlook for the UK and Central and Eastern European Countries is also described. A special chapter discusses wage developments from the perspective of individual countries.
Against the background of the slowdown in global growth, the Euroframe institutes expect a moderate weakening of economic growth in the euro area for 2019 and 2020. Sentiment indicators suggest that the economic momentum cooled in the course of 2018 will continue at the beginning of 2019. Unemployment, on the other hand, will continue to decline over the forecast horizon, albeit at a slower pace than in previous years. The improved situation on the labour market is supporting consumer demand of private households. Concerning price development, a continued moderate increase in consumer prices is expected in the euro area.
The Euroframe Group (European Forecasting Research Association for the Macro-Economy) consists of the European research institutes CASE, CPB, DIW, ESRI, ETLA, IfW, NIESR, OFCE, Prometeia and WIFO. See also http://euroframe.org/