Europe's economy is expected to grow by 1.3 per cent next year, driven by domestic demand in core countries such as Germany, according to a note from Credit Suisse on Monday.
The analyst said it remains "considerably more optimistic than consensus" of gross domestic product (GDP) growth of 0.9%.
"For the euro-area, this should mark a conclusive emergence from crisis and recession, with GDP marking only its third year of positive growth since 2008," Credit Suisse said.
"Importantly, we are expecting GDP to grow in all of the periphery, including Greece. That should, at the margin, make for a more favourable environment for the sustainability of both public and private sector debt."
The company added that a key driver of the economy could be corporate spending, supported by low rates and a solid financial surplus in the sector, but the crisis has kept businesses from investing thus far.
Yet a change of mood has been noted in the industry, with a sharp improvement in corporate profit forecasts as political and financial market volatility ease back.
In the UK, GDP is expected to grow by 2.8% compared to consensus of 2.3%.
"The UK should benefit from the upswing in demand across Europe as well as enjoying stronger corporate spending and looser fiscal policy at home," Credit Suisse said.
"The Bank of England's [BoE] forward guidance means that we do not expect monetary conditions to tighten in response to that strength."
The BoE last week announced it would keep interest rates at 0.5% amid speculation that a pick-up in the labour market would prompt a hike.
The central bank has vowed to keep interest rate at the record low at least until the unemployment rate, currently at 7.4%, falls to 7%.
"There's a meaningful risk that the Bank of England could start tightening policy - by raising rates - much sooner than expected," Credit Suisse added.
"Unemployment is falling fast, meaning that it could hit the 7% forward guidance threshold at some point in 2014."
A move to tighter policy is a plausible risk, the analyst said, given signs that some policymakers are becoming uncomfortable with the combination of strong growth and extremely loose monetary and credit policy.
The BoE has already scaled back its Funding to Lending Scheme to serve solely struggling small firms due to concerns that assisting individuals with mortgages could cause a potential housing bubble as prices accelerate.