Residential real estate has played a fundamental role in the recent crises in several eurozone countries, first by fuelling unsustainable economic growth and then by triggering or exacerbating he recessions that followed. However, the importance of the role it played and its contagion channels to the rest of the economy varied significantly from one Member State to the next.
CFA, Strategy and Economic Research at Amundi
In recent months, good economic and budgetary surprises have multiplied. This economic improvement is expected to continue through 2018-2019 despite the persistence of large excesses of public and private debts and the need to continue the reform efforts.
Bastien Drut & Tristan Perrier
Strategy and Economic Research at Amundi
Letter finalised at 3pm Paris time United States: first fed funds hike since 2006. Slight rebound in inflation. Real estate goes on supporting activity. / Eurozone: Business climate still well oriented and continuing employment progression. / EM : Mixed figures in Russia, increasing inflation in India (5.4%). Rate hike in Mexico. / Markets : Rise of the dollar and of the short end of the US yield curve due to the fed fund hike. Partial rebound in corporate bonds and good equity market reaction to the Fed's announcement.
Global Head of Research, Strategy and Analysis at Amundi