The Conference Board Economics Watch® - European View

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  • A slower and more volatile LEI for the Euro Area signals moderate growth in the near term
  • Given the strong growth registered during the first quarter, GDP may be above our 1.6 percent projection in 2011 even if the global slowdown weighs on exports
  • Headwinds to domestic demand – like the debt crisis and the uncertain inflation outlook – represent a downside risk for 2012
  • Of course, the headline number continues to hide divergence between core and peripheral countries, but an improved framework should limit the tensions within the Euro Area

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