The European economy is becoming more dependent on domestic demand as global trade faces growing uncertainty, according to a new report from KPMG. Eurozone growth will ease to 1.1 per cent this year, compared with 1.5 per cent last year, KPMG says. Growth is forecast to rise again to 1.5 per cent next year.
KPMG notes that Europe could benefit from new trade agreements, a stable manufacturing sector, and the rapid development of artificial intelligence. Another positive factor is falling inflation. Eurozone inflation is expected to ease to 1.7 percent as the impact of earlier energy price increases gradually fades.
Inflation in the Netherlands is projected to be higher. KPMG estimates that Dutch inflation will reach 2.4 per cent this year.
The firm also highlights that the use of artificial intelligence in Europe is advancing faster than many observers assume.
@anp | NEWS BRAINPORT
