Eurozone Economic Outlook
September 25, 2018Comprehensive data showed slower, but stable, growth in the Eurozone throughout the first half of the year, with second-quarter growth confirmed at a seasonally-adjusted 0.4% quarter-on-quarter. Internally, dynamics were uneven; higher inflation and weaker economic sentiment weighed on household spending, while easy credit conditions supported an upturn in fixed investment. As feared, external-sector dynamics dragged on growth as exports continued to underwhelm amid this year’s slump of global trade. Analysts expect a similar outturn for the third quarter, although available data has been noticeably weaker in recent months. In line with falling consumer sentiment, retail sales continued moderating through July. Meanwhile, lower composite PMI readings and waning industrial metrics point to slack in the economy that could be exacerbated by the pullback in global demand and uncertainty over the Eurozone’s trade relationship with the United States. In late September, the prospect of a chaotic, no-deal Brexit grew following an informal summit in Austria, in which a number of the UK’s proposals were dismissed by the bloc’s leaders as unworkable.
Eurozone Economic GrowthA lower cruising speed is expected next year as moderate wage growth and slower employment gains run up against higher inflation. That said, the outlook for investment looks bright amid the prospect of still-accommodative interest rates. Meanwhile, geopolitical uncertainties are expected to keep weighing on external trade and the firming of the euro is seen hitting exports. Met the why particular panelists project growth of 2.1% in 2018 and 1.8% in 2019, unchanged from last month’s forecast.
Eurozone Economy Data
5 years of Eurozone economic forecasts for more than 30 economic indicators.
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|Exchange Rate||1.15||0.65 %||Oct 18|
|Stock Market||1,114||-0.52 %||Oct 18|
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Eurozone Economic News
October 17, 2018
According to complete data released by Eurostat on 17 October, harmonized inflation came in at 2.1% in September, matching the preliminary estimate.
September 27, 2018
Economic sentiment in the Eurozone continued to fall in September, maintaining this year’s downward trend.
September 17, 2018
According to complete data released by Eurostat on 17 September, harmonized inflation came in at 2.0% in August.
September 13, 2018
The European Central Bank (ECB) delivered no surprises at its 13 September monetary policy meeting, leaving its main interest rates unchanged and reaffirming its commitment to winding down asset purchases related to its quantitative easing (QE) program by the end of the year.
September 12, 2018
Industrial output dropped in July, falling a seasonally-adjusted 0.8% over the previous month.