HSBC European fund manager Jeff Currington sees the addition of a further 10 countries into the EU n...
HSBC European fund manager Jeff Currington sees the addition of a further 10 countries into the EU next May as having a positive impact on the region.
Currington said the accession of countries from the Baltic, central and eastern European regions will boost growth and inflation in the EU as a whole, giving him confidence Europe will not follow the Japan path.
The impact on the EU of these countries' inclusion will be a 20% rise in the population, a reduction in the average age and a more skilled and flexible workforce, he said. While Currington anticipated their introduction will only initially boost GDP by 0.5%, he said there is tremendous scope for this to improve in the coming years.
Added to this, Currington believes the market has not yet priced in the benefits the EU will reap as a result of the increase in trade and from greater mobility of capital and labour.
He said: 'There will be more bad news in Europe in the short-term, but the medium and longer-term picture is more positive than the sceptics have led us to believe and I think that Europe is an attractive asset class on a three-to-five year view.'
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