\u201cAdding to domestic economic shocks and policy uncertainty, the slowdown in global demand and weak trade has hit the European economy hard,\u201d EU chief economist Marco Buti wrote in the report.<\/p>\n
While the strength of the labor market and the resilience of the services sector have so far prevented a more broad-based deterioration of momentum, Buti warned that \u201cthis resilience cannot endure indefinitely.\u201d<\/p>\n
\u201cEconomic activity now looks set to slow down in a number of member states, which at first appeared immune,\u201d he added.<\/p>\n
Manufacturers across the region have lowered their outlooks in recent weeks. Rheinmetall cut its\u00a0full-year forecast\u00a0citing a downturn in global automotive production, Siemens said weakness in the car and factory-equipment industries will lead to a\u00a0decline in some business volumes\u00a0next year, and Volkswagen\u2019s finance chief warned of\u00a0two tough years\u00a0ahead for industry.<\/p>\n
The EU\u2019s latest warning comes despite recent economic data suggesting the region\u2019s manufacturing slump may be bottoming out.\u00a0Progress\u00a0in U.S.-China trade talks has also sparked cautious optimism that economic prospects would stop deteriorating.<\/p>\n
\nWhat Bloomberg\u2019s Economists Say<\/h3>\n
\u201cUncertainty has been a key factor in pushing growth below potential and forcing the ECB into a fresh round of easing. A return of uncertainty toward the pre-trade war level would help stabilize the 2020 outlook.\u201d<\/p>\n
–David Powell and Dan Hanson. Read the\u00a0EURO-AREA INSIGHT<\/p><\/blockquote>\n
Momentum in France proved more resilient than expected in the third quarter, and the Spanish economy maintained its pace of robust growth.<\/p>\n
At the same time, Germany probably slipped into a technical recession, with the Commission predicting only \u201cmuted growth\u201d through 2021. Italy \u201cstill shows no signs of a meaningful recovery.\u201d<\/p>\n
The Commission\u2019s projections come with a call on countries including Germany to spend more.<\/p>\n
\u201cUsing available fiscal space actively would allow member states not only to provide a fiscal stimulus amid the sharp slowdown in manufacturing that threatens to spill over to the labor market, but also to refresh and modernize the public capital stock, thereby boosting potential growth,\u201d the report said.<\/p>\n
That echoes demands by the ECB, which deployed fresh monetary stimulus in September in a package aimed at bolstering the economy in the face of global trade tensions. Outgoing chief Mario Draghi warned that euro-area governments should do more to support the central bank\u2019s efforts with fiscal spending — a message his successor Christine Lagarde has also pushed.<\/p>\n
So far, the message has fallen on deaf ears. German Finance Minister Olaf Scholz argued Thursday the country is in a \u201cstable economic situation.\u201d<\/p>\n
\u201cWe will have more growth in the next years,\u201d he told reporters in Brussels. \u201cIf the trade tensions worldwide will be reduced, this will have a real impact on better growth.\u201d<\/p>\n
\u2014 With assistance by Nikos Chrysoloras, and Zoe Schneeweiss<\/em><\/p>\n<\/div>\n<\/div>\n<\/figure>\n","protected":false},"excerpt":{"rendered":"The European Commission cut its euro-area growth and inflation outlook amid global trade tensions and policy uncertainty, warning that the bloc\u2019s economic resilience won\u2019t last forever. The EU\u2019s executive arm sees economic…<\/p>\n","protected":false},"author":1,"featured_media":4494,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[46,48,57,68,76,77,82,86,87,90,96,99,103,107,109,111,113,137,139,146,148,160,174,183,184,201,202,209,222,230,232,233,244,246,249,256,262,263,267,277,279,280,285,288],"class_list":["post-4492","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-aramco","tag-athens","tag-baroudi","tag-carbon","tag-climate","tag-climate-change","tag-co2","tag-cyprus","tag-decarbonising","tag-democracy","tag-doha","tag-eastmed","tag-egypt","tag-embargo","tag-emissions","tag-energy","tag-energy-peace","tag-gas","tag-gazprom","tag-greece","tag-greenenergy","tag-international-maritime-disputes","tag-lebanon","tag-maritime-boundaries-east-mediterranean","tag-maritime-disputes","tag-offshore","tag-oil","tag-opec","tag-pollution","tag-poverty-alleviation","tag-putin","tag-qatar","tag-rosneft","tag-roudi","tag-russia","tag-saudi","tag-solar","tag-solar-power","tag-straddling-hydrocarbons-reserves","tag-total","tag-trump","tag-turkey","tag-unclos","tag-usa"],"_links":{"self":[{"href":"https:\/\/emimer.com\/index.php?rest_route=\/wp\/v2\/posts\/4492","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/emimer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/emimer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/emimer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/emimer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4492"}],"version-history":[{"count":0,"href":"https:\/\/emimer.com\/index.php?rest_route=\/wp\/v2\/posts\/4492\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/emimer.com\/index.php?rest_route=\/wp\/v2\/media\/4494"}],"wp:attachment":[{"href":"https:\/\/emimer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4492"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/emimer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4492"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/emimer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4492"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}