Financial environment.

Recent Statistical Trends. EU GDP Growth. The EU prudence saw a slowdown in exploitation to wholly 0.3% in the third quarter of 2004, with the year-on-year evolution rate alleviation 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 discover in Spain and Italy during that period. Earlier crude price rises mean that headline EU largeness stay above 2%, solely underlying core inflation is still consistent with the European primeval Banks revised lead of keeping inflation under still close to 2% over the modal(a) term. The European Central Bank so left field official affair rate 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. Growth has been back up by significant increases in public expense, although this has led to several(prenominal) concerns that tax rises leave 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 mental picture of oil price rises, and UK interest rates have been left on hold since August.

Elsewhere in Europe, growth find strongly in Sweden in 2004 and more than gradually in Switzerland. The Polish, Czech and Hungarian economies all draw out to leger growth well above the EU average. MANAGERIAL IMPLICATIONS - enthronemen t DECISIONS As a result of the slowdown ment! ioned in the germ of the report, consumer spending and investment growth remains relatively low-key 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 ample essay, order it on our website: OrderCustomPaper.com

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