OECD Indicators Point to European Recovery

Economic growth is set to pick up in Italy, France and the eurozone, according to leading indicators released on Monday by the Organisation for Economic Cooperation and Development. 

The Paris-based research body said its gauges of future economic activity — which are based on information available for January — also suggested growth in most of the world’s other large economies will remain at current rates over coming months. 

India and Russia are the main exceptions, the former set for a pick-up, and the latter for a further slowdown. 

The OECD’s composite leading indicators (CLIs) are designed to provide early signals of turning points between the expansion and slowdown of economic activity, and are based on a wide variety of data series that have a history of signalling changes in economic activity. 

The leading indicators for the eurozone suggest growth will pick up in the early months of 2015, and are consistent with new forecasts released by the European Central Bank Thursday, which projected an acceleration in growth this year. 

The ECB boosted its eurozone forecasts from three months ago, saying it now expects 1.5 per cent growth this year, 1.9 per cent in 2016, and 2.1 per cent in 2017. It previously had predicted the currency bloc’s economy would grow 1 per cent in 2015 and 1.5 per cent in 2016. 

via Herald Sun

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza