This is exchanges at Goldman Sachs where we discuss developments currently shaping markets, industries in the global economy.

I'm Jake Stewart, global head of corporate communications here at the firm.

Today's episode is all about what's ahead for Europe's economy in 2020.

We're joined by Yaristein, head of European economics for Goldman Sachs research.

Yar and his team recently published their 2020 outlook, so we'll talk through their

forecasts and the drivers behind them. Yari, welcome to the program.

Great, thanks for having me.

So, you know, this time of year,

you published your 2020 outlook this year

was called Through the Troff, which sounds optimistic.

Christine Lagarde's taking over the president of the ECB, the European Central Bank.

What awaits her and more generally the European area economy in terms of growth next year?

Well, we think 2020 is going to be a better year for Europe than 2019.

So we expect growth to be 1.1% next year which is a bit above consensus and is certainly notably

above where the current numbers are running. I think the reasons for the pickup are that the world environment looks a bit more

friendly. The global economy looks like it's regaining a bit of momentum, we think. A number of risks have diminished around the world regarding the trade war regarding Brexit.

And also domestically, we think there's some resilience particularly in consumption so wage growth has been

fairly resilient fiscal policy is providing a bit more of a boost we think in 2020 than in 2019 and you're also seeing some of the high

frequency data points starting to pick up so I think so far that's focused mainly

on the more forward-looking indicators,

whereas the, if you like, the spot data has remained weak.

But it does give us some confidence that we are moving,

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