- Chris Williamson, Markit's chief economist
Analysts are making their bets on which instrument Mario Draghi will use next in order to boost growth and inflation. But there is a possibility no additional measures will be required, as Greece's lawmakers passed next year's budget, the Bank of France revised up its growth outlook, while Germany logged a solid trade surplus, even though it was below analysts' forecasts.
Over the weekend the Greek parliament approved a budget plan for 2014, which includes further austerity measures that are supposed to pull the country out from its six-year recession. The latest budget plan marks a hope for economic stabilization, and according to the latest forecasts, GDP is likely to rise 0.6% next year, while this year the economy is still likely to contract by 4%.
Also Monday, the Bank of France upgraded its Q4 outlook, saying Europe's second largest economy will add 0.5% in the three months ended in December 31, the figure 0.1% more than expected earlier. The main boost is likely to come from French factories, as the gauge of business sentiment climbed to 101 last month.
Meanwhile, the single currency was hovering around the highest level since October 31, as Germany reported a trade surplus of 1.79 billion euros, from 20.3 in September, slightly below analysts' forecasts for a 18.3 surplus.
© Dukascopy Bank SA