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Positive Signs in European Labor Markets in 10 Charts

Jacob Funk Kirkegaard, (2018), «Positive Signs in European Labor Markets in 10 Charts», 20 February

The European Commission estimates the euro area economy grew at 2.5 percent in 2017, an upward revision of its previous estimates, suggesting that the pattern will continue in 2018. This trend is at least one percentage point above reasonable estimates of the euro area’s potential growth rate. The still subdued levels of headline (and core) inflation in the euro area remain well below the ECB’s target, indicating that significant unused capacity remains a problem after the euro area crisis. But at least the strong cyclical recovery is finally pushing the European economy back towards full utilization.

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