Consumer shelters economy from external woes – for now

Going forward the consumer will remain the key pillar of the economic expansion in the Eurozone thanks to the favorable labor market trend. Don’t expect a helping hand from the external sector given that the stimulus bazooka in China has yet to prove its success and escalating trade tensions between the US and China are posing a clear downside risk to global trade. All in all we expect Eurozone GDP to expand by 1.2% in 2019  and hence below the potential rate for the first time in five years.

Contact

Ana Boata
Allianz Trade