Estimates likely to confirm sluggish eurozone growth
An advance estimate of fourth quarter eurozone economic growth will today be released.
Although 2019 began with a sudden uptick of 0.4% quarterly growth, the economy decelerated during the second and third quarters at 0.2%, continuing a trend of slow growth that began in 2017.
The bloc’s sluggishness partially stems from uncertainty surrounding the upcoming post-Brexit trade negotiations, the US and China’s protracted trade-sparring and the Trump administration’s tariff threats on EU goods. Such a volatile political environment dampens world demand for European products. Furthermore, low European consumer demand has also played a part in the slowdown. As a result, even the Eurozone’s largest economy, Germany, experienced a lacklustre year for its manufacturing base.
Expect the anaemic growth to persist in the new figures and into the future. Even if the prospects of international commerce stabilize, Europe still faces stagnant domestic markets. Robust growth remains elusive for the time being.
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