Eurozone's economy expected to recover slightly: think tanks

The eurozone economy is expected to recover slightly in 2015 based on the assumption that the agreement between Greece and its creditors in the eurozone holds firm, three think tanks said on Wednesday in a joint forecast report.

After growth rates of 0.2 percent and 0.3 percent in the third and fourth quarters of 2014, gross domestic product (GDP) should grow by 0.4 percent in the first three quarters of the year, according to the latest forecast by Munich-based Ifo institute, the French Insee institute, and Italy's Istat institute.

In spite of the euro's depreciation, the eurozone's economy was boosted by an upturn in exports, coupled with robust growth in private consumption fueled by low energy prices.

At the same time, disposable income levels and investments will both increase slightly. The three think tanks predicted investments to grow by 0.2 percent, 0.4 percent and 0.5 percent respectively in the first three quarters of 2015.

Prices are expected to fall by 0.3 percent and 0.1 in the first and second quarter, based on the assumptions that the price of a barrel of crude oil remains at 56 U.S. dollars and that the euro-U.S. dollar exchange rate stabilizes at 1.10, the forecast report said. Endit