European Economics

European Economic Outlook

18 January, 2019

Missing the global tightening cycle

The euro-zone should regain some momentum in the coming months, at least compared to its dire performance at the end of last year. But we think the economy will expand by just 1% in 2019 as a whole. Demand in key export partners is set to slow further, particularly if we are right in expecting the US economy to lose steam later this year. Business investment has come off the boil and will be held back by the weak global backdrop. And household consumption looks set to increase at only a moderate

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