ExpertEye European Automotive Report Q1 2017 | Page 4

European GDP
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The European economy has now enjoyed four consecutive years of sustained but moderate growth. In fact, the latest flash estimate from
Eurostat shows the EU28 GDP rose by 2.0% in Q1 2017 over the same period last year which is ahead of the 1.9% increase seen in the US,
although the euro zone fell just behind, up 1.7%,
The gap between euro and non-euro EU country growth is forecast to continue through 2017 and 2018 with the EU28 hovering around the
1.9%-2.0% mark and the eurozone countries forecast to be 1.7% in 2017 and 1.8% next year. The challenge stopping Europe from enjoying
increased levels of growth are the still low wage growth, rising inflation, high levels of private and public debt plus the ongoing concerns
around several banks. The results of recent elections in the Netherlands and France, an electoral system which should avoid a large shift to
the right in German politics and what is looking like an increasingly likely Conservative landslide in the UK election will at least ensure some
stability in government policy.
Brexit remains the biggest unknown factor, although the fact that it is in neither party’s interest to place major obstacles in the way of mutual
trade is likely to result in little significant damage to growth in the UK or the reamining EU member countries. Whilst rising inflation is forecast
to impact private consumption, it is still forecast to be the main driver of European growth over the next couple of years.
European Automotive Report - 2017 Quarter 1
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