Regional Insight in Association with S&P Global – Low Growth And Lower Rates: The Eurozone In 2020

S&P Global Ratings believes economic weakness in the eurozone is now set to extend into 2020 considering that we see no rebound in external demand. Global trade growth is hovering around zero, trade tensions persist, and Chinese GDP growth is likely to slow to below an annual 6%. The main pillar of growth in the eurozone remains consumption, thanks to tight labor markets and dynamic wage growth. Yet, the economy is slowly starting to feel the effects of the trade-related manufacturing slowdown. Capacity pressures and employment expectations are all easing, pointing at a deceleration in investment.