Now that the European Commission cut its outlook on the Eurozone, European market investors can use country-specific exchange traded funds to target areas of potential strength.
The EU commission downwardly revised the gross domestic product in the 18-country Eurozone to expand 0.8% this year from its early forecasted 1.2% expansion, reports Gabriele Stenhauser for the Wall Street Journal. In 2015, the Eurozone economy is expected to grow 1.1%, downwardly revised from 1.7%.
The revised expectations were lowered due to diminished growth and low inflation, or stagflation, notably among the largest members, including Germany, France and Italy. The commission also warned that weaker emerging markets, lower demand and investment in Europe, an end to the Federal Reserve’s bond-buying program, and the negative effects of austerity measures will continue to weigh on the economy. [At Least European Dividends are Rising]
Looking ahead, Finland, Italy and France will be the slowest economies next year, with Finish economy expanding 0.6% in 2015, Italy growing 0.6% and France expanding 0.7%.
Traders who want to monitor the respective markets can watch the iShares MSCI Finland Capped ETF (NYSEArca: EFNL), iShares MSCI Italy Capped ETF(NYSEArca: EWI) and iShares MSCI France ETF (NYSEArca: EWQ). Year-to-date, EFNL has dipped 2.4%, EWI fell 5.6% and EWQ decreased 9.4%.
On the other hand, Ireland and Greece are expected to generate the most growth in 2015, with the Irish economy expanding 3.6% and Greek economy growing 2.9%. Additionally, Greece is expected to make a decent turn around next year from a 0.6% GDP growth this year.