Goldman Sees European GDP Growth Being Aided By Euro Exchange Rate & Low Oil Prices

In a mid day note Thursday Goldman says FX and oil prices will help to push Euro area output to 0.4 - 0.5 QoQ or 1.5 - 2.0 percent QoQ Annualized. Euro output growth to be sustained in light of headwinds from Asian demand weakness. The low oil prices will impact Europe less given civilians there consume on average 10 barrels of oil per year whereas in the US roughly 20 barrels/year are consumed by civilians.

Rising oil prices tends to Europe as Goldman notes a 10 percent rise tends to lower GDP by 0.2 - 0.4 percent