Eurozone: A perfect storm of negative hits – Nordea Markets
According to analysts at Nordea Markets, Euro-area economy will lead to a slowdown towards 1% in 2019 after it suffered a series of negative shocks during 2018, which dragged growth below 2% in 2018.
Key Quotes
“Populist parties dominated in Italian parliamentary elections and surprisingly formed a government together, bringing daily bond market moves to the same magnitude as seen during the Euro-area debt crisis on some days.”
“The trade war between the US and China escalated during the summer, and even if the Euro area was largely a bystander (it was targeted by steel and aluminium tariffs), the trade-dependent Euro-area economy suffered a lot from the weakening momentum in global trade.”
“The prospects of a hard Brexit or the UK leaving without an agreement started to really take its toll in the latter half of 2018. The extent of the damage depends a lot on how persistent the negative pressure from the shocks ends up being.”
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.
