European economies are booming. Businesses reported their best month of activity in over six years in November, with employment, consumer confidence and PMI surveys all rising to multi-year highs. DACH, an acronym based on the international registration codes for Germany, Austria and Switzerland, have been among the best-performing economies in Europe over the past 12 months. Germany remains at the forefront of the wider European economic revival, benefiting from a favourable global economy and improving trade. Manufacturing continued as the main engine of growth, boosting German exports to record highs despite political uncertainty and the strong euro. With its economy strongly linked to Germany, Austria is on course for its best year of GDP growth since 2011. Although both countries are in the midst of political negotiations to form governments following recent inconclusive elections, the risks of this derailing economic recoveries remain minimal. Switzerland enjoys a comparatively more stable political scene as well as an improving economy, underpinned by strengthening exports.
Europe Watch will focus on the outlook for property markets in the ‘DACH’ region—composed of the three “Germanophone” countries.
Source : CBRE Global Investors