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Bert Colijn, Senior Economist at ING, suggests that Eurozone’s growth of 0.4% in the second quarter may have felt like a disappointment at the time, but could well have  been a last hurrah of the growth cycle.

Key Quotes

“Eurozone GDP growth in 3Q  came in at just 0.2% and while one-off factors have influenced the number, it does not seem that growth will return to previous rates anytime soon.”

“In Germany, disrupted car production will have dampened GDP growth significantly in the third quarter, weighing on the eurozone average.”

“French GDP growth was stronger than in the first half of the year, mainly led by a consumption growth recovery, although the 0.4% increase did miss analysts’ expectations.”

“Perhaps more worrying was the stagnation of growth in Italy, which was the first time in four years that the economy did not post growth over a quarter. With budget discussions already tense between Rome and Brussels, this stagnation  will only add to concerns.”