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Looking ahead, it will continue to be a very bumpy journey as we anticipate economic contraction in the eurozone by -0.75% to -1.25% over the next year, hampered by growing political risk and fiscal tightening.
We anticipate the eurozone economy will contract by 1% to 1.5% over the next four quarters, driven by a deep recession and attempts at fiscal retrenchment in the periphery.
Faced with significant cyclical and secular challenges, encouraging policy action by the European Central Bank is proving constructive towards achieving longer term regional stability.