China’s stabilizing economy will likely provide a notable boost to the Eurozone in the coming months, according to economists at Goldman Sachs.
The world’s second largest economy’s annualised growth rate stabilized at 6.4 percent in the first quarter with key manufacturing PMI indicators returning to expansion territory above 50.00.
There is typically a three-month lag before the rebound in China’s economy spillover to Eurozone and Germany, in particular, the investment bank’s economists mentioned in a note.
So, with China’s economy stabilizing in the first quarter, the Eurozone economy could show signs of life in the second half of this year.
Goldman Sachs’ economists expect Eurozone’s growth rate to remain sluggish in the second quarter and accelerate to 1.5 percent in the second half of this year.
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