Real GDP Growth in European Union
Source: EUROSTAT
“Following a sharp contraction in the first half of 2020, euro area real GDP rebounded strongly and rose by 12.5%, quarter on quarter, in the third quarter, although remaining well below the pre-pandemic levels.”
“Over the medium term, the recovery of the euro area economy
should be supported by favourable financing conditions, an expansionary fiscal
stance and a recovery in demand as containment measures are lifted and uncertainty recedes.”
ECB Economic Bulletin, Issue No.8, 2021 January 07
Recommended Industry Allocation
Should the economic rebound in Europe continue, stocks, belonging to the cyclical industries will outperform a broader market. However, the economic outlook is highly uncertain and stock market volatility is expected to remain high. So, a portfolio should include stocks from the defensive industries as well.
Please use the diagram only as a broad indication what industries could have growth potential under current economic conditions as the industry performance is influenced by many different factors, not only by a business cycle.
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