Bert Colijn, Senior Economist at ING, points out that the second estimate of Eurozone’s GDP confirmed the growth of just 0.2% QoQ and 1.7% YoY.
Key Quotes
“The main culprit was Germany, the Eurozone’s stronghold throughout the 2010s, which saw its economy shrink by -0.2% in Q3. Disruptions in the car industry were an important driver of the first negative quarter since 2015 and the slow quarter in the Eurozone, but it seems that the worries about growth are broader than that.”
“Exports are weaker thanks to global problems related to trade wars and emerging markets, and consumption was dampened by the higher oil prices seen in Q3.”
“Industrial production in the Eurozone posted a very small decline in Q3, adding to the slow growth performance.”
“While a small recovery of growth in Q4 is in the making, it seems evident that the growth cycle for the Eurozone already peaked last year.”
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