The European landscape has largely unfolded as forecast in our European Strategic Outlook that was published in August 2013. A gradual improvement in the underlying economy is driving differentiation as growth slowly emerges at different rates across the Continent. The strategies that were outlined 6 months ago remain largely relevant in the current market.
Recovery is forecast to be led by the United Kingdom, the Nordics and Germany, but the clear division of Northern and Southern Europe, evident over the past five years and discussed in the previous paper, is becoming less defined by these metrics. The outlook for Northern Europe is more fragmented, with U.K. growth anticipated to be more than twice that of the Netherlands, the recovery in Southern Europe could see markets such as Spain regularly outperforming the rest of the Eurozone during the second half of the decade.
Source : Deutsche Asset & Wealth Management