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All 12 countries in the report are expected to see industrial production growth in 2016, led by Poland at the high end and the United Kingdom at the low end with 1.5% growth.
"Virtually the entire continent is now growing, although regional differences persist," Bledowski said. "Looser lending standards, combined with a promise of low interest rates for months to come, offer a strong incentive for companies to invest."
Bledowski, however, offers a caveat.
"Risks to the baseline scenario include a possible breakdown of consensus on refugees, Russia, TTIP, China, or the Middle East, which would sap investor confidence," he cautioned. "In addition, the re-emergence of the Greek default is simply a matter of time; the country's debt sustainability problems have not been solved but merely pushed aside for political expediency."
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