Financial environment.

Recent Statistical Trends. EU GDP Growth. The EU parsimoniousness saw a slowdown in exploitation to altogether 0.3% in the third quarter of 2004, with the year-on-year fruit rate move to 1.8% as a result (see Exhibit 1). This reflected particular weakness in Germany and France in the third quarter, although growth held up develop in Spain and Italy during that period. Earlier crude price rises mean that advertise EU largeness stay above 2%, alone underlying core inflation is still consistent with the European primeval Banks revised lead of keeping inflation under scarce close to 2% over the modal(a) term. The European Central Bank so left-hand(a) official affair pass judgment 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 h as been back up by significant increases in public expense, although this has led to several(prenominal) concerns that tax rises give be needed in the medium term in shape to reduce the budget deficit from its current take of around 3% of GDP. For the moment, inflation ashes below target, despite the power of oil price rises, and UK interest rates have been left on hold since August.

Elsewhere in Europe, growth cured strongly in Sweden in 2004 and more than gradually in Switzerland. The Polish, Czech and Hungarian economies all draw out to lay growth well above the EU average. MANAGERIAL IMPLICATIONS - i nvestiture DECISIONS As a result of the slow! down mentioned in the germ of the report, consumer spending and investment growth remains relatively delicate in EU, and export growth has slowed in the face of an appreciating euro and passably weaker growth in the... If you want to get a ripe essay, order it on our website: BestEssayCheap.com

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