Financial environment.

Recent Statistical Trends. EU GDP Growth. The EU parsimony saw a slowdown in exploitation to wholly 0.3% in the third quarter of 2004, with the year-on-year harvest-feast rate backup to 1.8% as a result (see Exhibit 1). This reflected particular impuissance in Germany and France in the third quarter, although growth held up snap off in Spain and Italy during that period. Earlier crude price rises mean that publicise EU largeness stay above 2%, scarce underlying core inflation is still consistent with the European aboriginal Banks revised lead of keeping inflation on a lower floor further close to 2% over the modal(a) term. The European Central Bank so go forth official affair rank unchanged at 2% throughout 2004 and there is no indication that an archeozoic change in rates is planned. A representative example is this of the UK economy, which grew potently during the first half of 2004, but also suffered a mental retardation in growth in the third quarter. Growt h has been back up by significant increases in public expense, although this has led to several(prenominal) concerns that tax rises go away be needed in the medium term in shape to reduce the budget deficit from its current take aim of around 3% of GDP. For the moment, inflation ashes below target, despite the make of oil price rises, and UK interest rates have been left on hold since August. Elsewhere in Europe, growth regain strongly in Sweden in 2004 and more than gradually in Switzerland. The Polish, Czech and Hungarian economies all draw out to present growth well above the EU average. MANAGERIAL IMPLICATIONS - investiture DECISIONS As a result of the slowdown mentioned in the get-go of the report, consumer spending and investment growth remains relatively diffuse in EU, and export growth has slowed in the face of an appreciating euro and slightly weaker growth in the... If you want to get a all-encompassing essay, order it on our website: BestEssayCheap.com

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