26 Mar 2015
Euroarea money supply increase supporting GDP growth – Danske
FXStreet (Barcelona) - According to Senior Analyst at Danske Bank, Pernille Bomholdt Nielsen, the increase in eurozone money supply points to a GDP growth forecast 0.7% qoq in mid-2015, posing upside risk to the bank’s 1.6% 2015 forecast.
Key Quotes
“Euro-area M3 money supply increased 4.0% y/y in February after rising 3.7% y/y in January (revised down from 4.1% y/y). This is the highest rate of increase since April 2009.”
“Growth in M1 money supply was also higher at 9.1% y/y in February from 8.9% y/y in January.”
“In real terms it is a good leading indicator for economic activity and it continues to point to GDP growth around 0.7% q/q mid-2015.”
“The signal is stronger than our above-consensus forecast and we continue to see upside risk to our GDP growth forecast of 1.6% in 2015.”
“Loans to the private sector improved further and increased 0.6% y/y in February up from 0.4% y/y in January.”
“Overall, the figures confirm our view that the euro-area recovery is on track and the improvement in lending to non-financial corporations is important for GDP growth to gain further momentum. “
Key Quotes
“Euro-area M3 money supply increased 4.0% y/y in February after rising 3.7% y/y in January (revised down from 4.1% y/y). This is the highest rate of increase since April 2009.”
“Growth in M1 money supply was also higher at 9.1% y/y in February from 8.9% y/y in January.”
“In real terms it is a good leading indicator for economic activity and it continues to point to GDP growth around 0.7% q/q mid-2015.”
“The signal is stronger than our above-consensus forecast and we continue to see upside risk to our GDP growth forecast of 1.6% in 2015.”
“Loans to the private sector improved further and increased 0.6% y/y in February up from 0.4% y/y in January.”
“Overall, the figures confirm our view that the euro-area recovery is on track and the improvement in lending to non-financial corporations is important for GDP growth to gain further momentum. “