Data monitoring company IHS Markit warned that export growth was “evaporating” in the 19-country single currency bloc, even though powerhouses Germany and France continued to outperform. A near stagnation of exports contributed to one of the worst months for the eurozone economy for almost two years, said Chris Williamson, Chief Business Economist at IHS Markit. Trade wars, Brexit, waning global demand (notably in the auto industry), and rising political uncertainty both within the Eurozone and further afield all fueled the slowdown in business activity, he said.
Amid the trade tensions as well as concerns about emerging markets, the European Central Bank now expects growth of 2.0 percent in 2018 and 1.8 percent in 2019.