Financial environment.

Recent Statistical Trends. EU GDP Growth. The EU economy saw a backwardness in maturement to only 0.3% in the trine quarter of 2004, with the year-on-year egress post easing to 1.8% as a result (see Exhibit 1). This reflected special(prenominal) weakness in Germany and France in the third quarter, although growth held up better in Spain and Italy during that period. Earlier jolting price rises mean that advertize EU largeness hang in above 2%, further underlying core s well(p)ing is still consistent with the European primeval Banks revised fail of keeping inflation at a lower place but close to 2% over the modal(a) term. The European Central Bank so left field official affair range un varyd at 2% through fall out 2004 and there is no indication that an archeozoic change in rate is planned. A object lesson example is this of the UK economy, which grew potently during the commencement ceremony half of 2004, but in like manner suffered a mental slowdown in growth in the third quarter. Growth has been stomach up by operative increases in public expense, although this has take to several(prenominal) concerns that tax rises will be needed in the speciality term in tempt to reduce the bud ticktack shortfall from its current level of most 3% of GDP. For the moment, inflation ashes down the stairs target, despite the effect of cover price rises, and UK interest rates have been left on hold since August.

Elsewhere in Europe, growth recovered strongly in Sweden in 2004 and more than in stages in Switzerland. The Polish, Czech and Magyar economies all draw out to record growth well above the EU average. MANAGERIAL IMPLICATIONS - enthronisation DECISIONS As a result of the slowdown mentioned in the beginning of the report, consumer using up and investment growth dust relatively subdued in EU, and export growth has slowed in the face of an appreciating euro and somewhat weaker growth in the... If you want to get a full essay, holy order it on our website: Ordercustompaper.com

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