The euro area likely registered its fastest GDP growth since 2011 in Q1-2015; 0.5% q/q is expected. The recovery was likely broad-based, with consumption and net trade likely contributing the most to growth. That said, investment is still about 17% below pre-crisis levels in real terms. Investment is expected to contribute significantly to medium-term growth on the back of the European Central Bank’s (ECB’s) measures and less policy uncertainty. ECB measures (which drove the euro down and lowered borrowing rates) and the decline in the oil price supported growth in Q1. “We expect overall euro-area growth momentum to be maintained in 2015, growth remains uneven: of the majors, France is lagging behind at the moment”, says Standard Chartered.
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