Analysts See European Banks and Unemployed Youths as Top Risk Factors

The poor health of the banking system and youth unemployment are the two biggest threats to the future of the euro zone economy, according to a Reuters poll of economists on Thursday.

The survey also showed they agree the European Central Bank’s adoption of forward guidance marks a significant change in its approach to policy-making, rather than merely tinkering.

As in a similar poll last month, the survey of more than 40 analysts suggested the economy stagnated from April through to June.

That would at least mean the 17-nation bloc has exited a recession that stretches back to the end of 2011, but few economists predict anything other than tepid economic growth from here onwards.
Consensus quarter-on-quarter growth is not expected to top 0.3 percent at any point until 2015 at the earliest.

CNBC

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