Well placed toride out the downturn

Although consensus forecasts for eurozone growth have been cut, the outlook for the Continent is far less gloomy than for the US

In common with other developed economies around the world, Continental European markets face economic headwinds in 2008. In particular, economic growth is likely to slow as a result of a weaker trend in the US economy, globally tighter credit conditions and a less confident mood amongst consumers and industrial companies. Consensus forecasts for eurozone GDP growth in 2008 have already been reduced and the overall growth rate for the year is expected to be between 1.7% and 1.8%. An overall recession in the Continental European economy is likely to be avoided although the industrial sector...