European downturn to impact global growth – ANZ
According to Brian Martin, analyst at ANZ, the deepening downturn in the European Union’s economy is a source of significant concern for global growth as EU accounts for 15% of world import volumes.
Key Quotes
“Services account for 75% of EU GDP and jobs. Emerging evidence of persistent weakness in that sector has negative implications for employment growth and domestic demand.”
“Adding to uncertainty is the recent rise in EU-US trade tension. Whilst the EU wants to settle the Airbus dispute, there is a risk that tension could spill over. President Trump will decide about auto tariffs in mid-November.”
“Europe is deeply integrated in the world economy and global value chains. A slowdown in European manufacturing and domestic demand would have negative repercussions for import partners.”
Author
Sandeep Kanihama
FXStreet Contributor
Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.
