Eurozone | Capex prospects brighten as industry rebounds

We expect eurozone business investment to stage a vigorous recovery this year, boosted by a rebound in sales as the economy reopens. Booming global trade and structural tailwinds point to upside risk for industry investment plans.

What you will learn:

  • Corporate health suffered greatly last year, especially in hard-hit services sectors. And while uncertainty has receded, concerns about short- and longterm prospects remain high. 
  • The 9% fall in business investment in 2020 was milder than the scale of the recession had suggested and much smaller than during the financial crisis, as lockdowns disproportionately hit services sectors with low capital intensity.
  • Logistics and IT firms as well as construction companies that are benefitting from stimulus and resilient residential activity, will spend much more freely than the suffering hospitality and bricks-and-mortar retail businesses.

Topics: Europe, Eurozone, ECB, Monetary policy, Coronavirus, Industry, Macro, GDP, Recovery, Investment, Fiscal policy

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