Bert Colijn, senior economist at ING, notes that the Q2 GDP growth in the Eurozone slows to 0.2% as the economy has not been able to maintain its surprising growth rate of Q1 with softening global demand and uncertainty about the outlook dampening the economic activity.
Key Quotes
“The first quarter of 2019 was strong and had caused confusion among analysts as surveys had pointed to a weak start to the year. We can now conclude that one-offs lifted economic activity in Q1 and that surveys had indicated continued weakness as the underlying trend. That raises a red flag for Q3 as both the Economic Sentiment Indicator and the PMI point to a strong drop in industrial production in July. That means that Q3 will likely remain subdued at best from a growth perspective.”
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