Data released this week added to the evidence that soft global demand and the previous appreciation of the euro have taken a toll on euro-zone exports. We doubt that exports will regain all of their lost momentum, but growth should pick up in the coming quarters. Prospects for domestic demand are also bright, boding well for the overall outlook.
One country that was particularly affected by a slowdown in export growth in Q1 was the Netherlands, where they fell for the first time in 19 quarters. This appears to have been partly due to temporary factors, leaving scope for a strong rebound in Q2. In light of the latest data we have revised down our 2018 GDP growth forecast, but we still expect the Netherlands to be one of the region’s strongest performers.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services