European private consumption to rise in 2015

European private consumption to rise in 2015

4 February 2015, 14:44

According to a fresh study by a market research group GfK, Europeans look set to spend more money throughout 2015. Retailers, however, will hardly get enough profit.

On Wednesday German market research company GfK said it expected private consumption in the 28-member European Union to rise by 1 percent to 1.5 percent in 2015.

Presenting its annual outlook, the group drafted in a 1.5-percent increase in consumption in Europe's economic powerhouse.

The results come in line with the predictions of the government in Berlin and some economic think tanks, which also forecast a 1.5-percent expansion of Germany's gross domestic product (GDP).

While Germans were willing to spend a lot more this year, retailers were unlikely to profit from any spending activities this year as Germans were prone to put their money into real estate and travel activities rather than on goods and services, GfK chief Matthias Hartman noted.

GfK's Consumer Climate Europe study indicated the improved outlook for 2015 came on the back of 1.1-percent growth in German consumption in 2014 when geopolitical crises persisted.

There were more risks now that might slow down economic development over the coming months, expressing fears that the newly elected government in Greece may not stick to debt-servicing agreements with its main creditors.

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