Investor Presentaiton
-2%
Dec-10
Source: European Central Bank, Eurostat
0%
Jun-11
Dec-11
Jun-12
Dec-12
Jun-13
Dec-13
GDP (growth %, y-o-y)
Jun-14
12% 19.6%
10.1%
10.8%
10.7%
9.9%
10%
9.0%
8.2%
10%
7.2%
9%
6.6%
8%
8%
6%
2.5%
4%
2.0%
2.3%
2.6%
2.1%
1.2%
1.4%
7%
0.8%
2%
-0.6%
6%
Dec-14
Macroeconomic Key
Figures and Forecasts
Macroeconomic Developments in Europe
■ EU GDP growth weakened in late 2018 partly due to regulatory bottlenecks experienced by car
manufacturers, leading to a sharp reduction of production. ECB expects the weakening to be
largely temporary and projects that growth will subsequently recover
■ Over medium term, the fundamentals related to the accommodative monetary policy,
improving labour conditions and stronger balance sheets support continued expansion
■ Unemployment is projected to continue to decrease over the projection horizon, although at a
slightly lower rate than previously expected, mainly reflecting the more subdued economic
recovery
Wage moderation and past labor market reforms are seen as supporting employment growth
■ The labour force is expected to expand, reflecting the continued influx of refugees and the
fading of discouragement effects
EU28 GDP growth and Unemployment Rate
Decreased Consumer Credit Borrowing Rates
■ Since the financial crisis, interest rates have decreased significantly creeping down close to zero
and negative in some instances
■ Interest rates in the Euro zone are expected to remain low ("lower for longer") going forward
■ The low interest rate environment has had a negative effect on traditional banks' earnings,
leading to cost cuts including laying of personnel and closing down branches
■ The annual percentage rate of charge (APRC) for consumption loans in the Euro zone has moved
in correlation with the Euro area's rate applied to Main Refinancing Operations (MRO)
■ In addition, the emergence of alternative providers following the recent Fintech boom, has
enabled consumer to borrow on more favourable terms
APRC value in the Euro area – Loans for consumption
Jun-15
Dec-15
Jun-16
Unemployment rate (%)
Dec-16
Jun-17
Dec-17
Jun-18
Dec-18
5%
Dec-03
APRC value Loans for consumption
ferratum
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