Financial environment.

Recent Statistical Trends. EU GDP Growth. The EU economic system saw a slowdown in exploitation to all 0.3% in the third quarter of 2004, with the year-on-year maturement rate assuagement to 1.8% as a result (see Exhibit 1). This reflected particular failing in Germany and France in the third quarter, although growth held up interrupt in Spain and Italy during that period. Earlier crude price rises mean that advertize EU largeness stay above 2%, solely underlying core inflation is still consistent with the European commutation Banks revised lead of keeping inflation to a lower place only if close to 2% over the modal(a) term. The European Central Bank so leftover official affair order unchanged at 2% throughout 2004 and there is no indication that an archeozoic change in rates is planned. A representative example is this of the UK economy, which grew potently during the first half of 2004, but also suffered a mental retardation in growth in the third quarter. G rowth has been back up by significant increases in public expense, although this has led to several(prenominal) concerns that tax rises pass on be needed in the medium term in shape to reduce the budget deficit from its current take aim of around 3% of GDP. For the moment, inflation ashes below target, despite the do of oil price rises, and UK interest rates have been left on hold since August.

Elsewhere in Europe, growth regain strongly in Sweden in 2004 and more than gradually in Switzerland. The Polish, Czech and Hungarian economies all draw out to remember growth well above the EU average. MANAGERIAL IMPLICATIONS - investm ent DECISIONS As a result of the slowdown me! ntioned in the source of the report, consumer spending and investment growth remains relatively faint in EU, and export growth has slowed in the face of an appreciating euro and pretty weaker growth in the... If you want to get a rise essay, order it on our website: BestEssayCheap.com

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