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Budget 2015 Macroeconomic Forecasts Presentation to Joint Committee on Finance, Public Expenditure and Reform 7 October 2014. International Developments & Inflation. Mixed picture among trading partners. “ lowflation ” is prevailing in euro area. Source : Eurostat.
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Budget 2015 Macroeconomic Forecasts Presentation to Joint Committee on Finance, Public Expenditure and Reform 7 October 2014
“lowflation” is prevailing in euro area Source : Eurostat
Investment has been driven by ‘core’ M&E and construction
Summary • Recovery is gaining momentum and widening • Forecasts are being revised upwards for this year and next • No-policy-change assumption is made for these forecasts • Subject to revision on Budget day
Risks • External • Geo-political tensions • Weak growth and low inflation in the euro area • Financial market risks • Domestic • Potential for more rapid recovery in investment