Eurozone Economic Outlook
November 20, 2018The Eurozone economy lost momentum in the third quarter, with GDP growth recording the worst result in over four years. Although a breakdown by components has not been released yet, sluggish private consumption as higher oil prices dented households’ purchasing power and weak industrial activity, partly due to one-off factors which held back automobile production, likely drove the result. While the economy is expected to bounce back somewhat in the fourth quarter, the economy has clearly entered a lower cruising speed this year. Available data for Q4 suggests that activity remained downbeat, with economic sentiment and the composite PMI both sliding in October. The political arena, meanwhile, remained turbulent. In November, the populist Italian government mostly stuck to its guns over its expansionary 2019 budget, defying calls by the European Commission to rein in spending and setting the stage for a protracted conflict with the institution. Moreover, although EU leaders and UK Prime Minister Theresa May finally struck a deal on the UK’s withdrawal from the European Union, political turmoil in the UK is casting a shadow over whether the agreement will receive the greenlight in parliament.
Eurozone Economic GrowthA tightening labor market and solid investment should buttress activity next year. However, less accommodative monetary policy and slower global trade will cause growth to slow, while rising global protectionism and turbulent internal politics remain the key risks to the bloc’s forecasts. Met the why particular panelists downgraded their view of the Eurozone economy this month, taking into account the recent downbeat data and stark external backdrop. The panel now projects growth of 1.7% in 2019, which is down 0.1 percentage points from last month’s forecast, and 1.6% in 2020.
Eurozone Economy Data
5 years of Eurozone economic forecasts for more than 30 economic indicators.
Get a sample report showing all the data and analysis covered in our Regional, Country and Commodities reports.
|Exchange Rate||1.13||0.65 %||Dec 14|
|Stock Market||1,069||-0.52 %||Dec 14|
Start Your Free Trial
Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.
Eurozone Economic News
December 17, 2018
According to complete data released by Eurostat on 17 December, harmonized inflation came in at 1.9% in November, a notch less than the preliminary estimate and below October’s 2.2%.
December 14, 2018
Leading data suggests that the Euro area’s economy ended the year on a weak note.
December 13, 2018
In a historic, although predictable, monetary policy meeting, the European Central Bank (ECB) confirmed on 13 December that its massive asset-bond buying program is ending this month.
December 12, 2018
Industrial output returned to growth in October, rising a seasonally-adjusted 0.2% over the previous month.
December 7, 2018
The third estimate of GDP released by Eurostat confirmed that activity waned in the third quarter.