Eurozone Economic Outlook
March 3, 2020
A second estimate confirmed that the Eurozone economy cooled markedly in the final quarter of 2019, while weak available data and the coronavirus outbreak bode ill for the first quarter of this year. A notable downturn in the industrial sector against the backdrop of global trade tensions, subdued demand from key trading partners and sustained political uncertainty weighed on the economy in the fourth quarter. Turning to Q1 2020, still-weak consumer and business confidence in January-February suggest economic activity will remain feeble. Moreover, the outbreak of coronavirus in Italy and its spread to other Euro area countries look set to hit the manufacturing and tourism sectors. In politics, the resignation of Annegret Kramp-Karrenbauer, Merkel’s obvious successor, highlights tensions between government coalition partners, stoking political uncertainty in Europe’s largest economy.Eurozone Economic Growth
The economy should grow only modestly this year. Trade uncertainty and weak global backdrop will restrain exports and hit investment and industrial activity. Moreover, cooling employment growth and higher savings are set to constrain household spending. Political uncertainty, the impact of coronavirus, U.S.-EU trade tensions and Brexit pose the main downside risks. Growth is seen at 1.0% in 2020, which is unchanged from last month’s forecast. In 2021, GDP is seen increasing 1.2%.Eurozone Economy Data
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Eurozone Facts
| Value | Change | Date | |
|---|---|---|---|
| Exchange Rate | 1.12 | 0.65 % | Dec 31 |
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Eurozone Economic News
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Eurozone: Economic sentiment dives at sharpest pace on record in March
April 1, 2020
Sentiment in the Eurozone nosedived in March due to the blow of coronavirus, plunging to 94.5 points from February’s 103.4 points.
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Eurozone: Inflation slumps in March as coronavirus hits energy prices
April 1, 2020
Harmonized inflation fell to 0.7% in March from February’s 1.2%, according to a flash estimate released by Eurostat on 31 March.
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Eurozone: Unemployment edges down to an almost 12-year-low level ahead of coronavirus blow
April 1, 2020
Labor market conditions in the common currency bloc strengthened in February, ahead of an inevitable worsening due to the pandemic, according to data released by Eurostat.
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Eurozone: Business activity crumbles at sharpest pace on record in March
March 24, 2020
The Flash Eurozone Composite Purchasing Managers’ Index (PMI), produced by IHS Markit, nosedived from 51.6 in February to 31.4 in March, marking the worst result since data was first collected in July 1998—including the lows during the global financial crisis.
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Eurozone: ECB to buy over EUR 1 trillion of Eurozone debt this year to counteract coronavirus fallout
March 19, 2020
On 18 March, at an extraordinary night meeting after borrowing costs for Southern European countries had jumped on mounting coronavirus (Covid-19) concerns, the European Central Bank (ECB) unexpectedly decided to step up its efforts to combat the economic and financial shockwaves currently shaking the Euro area.
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