According to senior analysts at Morgan Stanley, Euroland should see economic growth pick up during the second quarter of 2003. In some cases, this recovery has already begun. Securitization is likely to continue to play an important role as other forms of funding becoming increasingly challenging to arrange.

For continental Europe, growth will be driven by consumer spending and corporate investments whereas in the U.K., consumer spending is likely to slow down, and the weakness in domestic demand will need to be picked up by additional export demand. "All in all we expect the Euro area economy to accelerate from 0.4% GDP growth this year to 1.9% next year, and, in the U.K,. we expect a more moderate acceleration from 1.7% this year to 2.4% next year," said the analyst.

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