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Richard Privorotsky

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  1. Goldman Sachs24 min

    The European Recovery: Here to Stay?

    Allison Nathan, Jari Stehn, Richard Privorotsky, Yari Shteyn, Rich Pivorotsky

    Driven by rapid vaccination rates and a significant fiscal stimulus package, the Euro Area and UK are projected to see GDP growth rates of 5.4% and 8.1% respectively in 2021, outpacing global consensus. While the ECB maintains an accommodative monetary stance with no rate hikes anticipated until 2025, European equity markets have rallied with cyclical sectors leading a shift in investor flows away from defensive positions. Despite persistent political risks in Italy, France, and Germany, the outlook remains positive as temporary inflationary pressures are expected to subside by late 2021, allowing structural reforms to drive medium-term expansion.

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