Economic output in the Eurozone will increase by 0.4 percent during the first three quarters of this year respectively, according to the three research institutes Ifo (Munich), INSEE (Paris) and ISTAT (Rome).

This development will be driven by dynamic domestic demand. Private consumption is forecast to grow by 0.5 percent during the first three quarters of 2016, stimulated by rising employment and low oil prices.

In Germany the influx of refugees will boost government expenditure and social transfers. Investments in the Eurozone will pick up from 0.5 percent to 0.7 percent in the first three quarters due to rising capacity utilisation and low interest rates.

Assuming a crude oil price of 40 US dollars per barrel and a euro exchange rate of 1.12 US dollars, the inflation rate will rise to 0.3 percent in the third quarter.