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.”
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