Prospects 2018

Europe

The euro-area is unlikely to sustain 2017's surprisingly high growth rates

Brexit will dominate politics and economics next year, leaving little space for policy innovation

While most eastern EU economies will experience a strong cyclical upswing, the Western Balkans will remain unstable

Elections in Italy and possibly Germany, the Catalan crisis and French reforms will shape politics next year

Democratic backsliding in Poland and Hungary rather than Brexit will be the EU’s greatest challenge next year