Europe's Economic Outlook Seems to Be Going From Bad to Worse
Thursday, 7 February 2019 19:23 WIB | ECONOMY |Ekonomi Eropa

The economic outlook in the euro area looks like it might be going from bad to worse.

The 19-nation region has had a poor start to 2019: disappointingly weak indicators keep rolling in, the list of one-off growth inhibitors is getting longer, and a slew of institutions are downgrading their forecasts. Now, the bloc™s executive sees œsubstantial risks -- a change in tone that goes beyond the downbeat assessment of the European Central Bank.

The European Commission says an Italian economy close to stagnation and significantly weaker momentum in Germany will weigh on growth in the euro area this year, and has issued sweeping downward revisions to most of the region™s major economies.

Gloomier prospects reflect the protracted impact from unrest in Italy and France, and changing regulations that held back car production -- particularly in Germany. Also looming are uncertainty around global trade and a sharper-than-expected slowdown in China.

While ECB President Mario Draghi and colleagues have acknowledged the weakness and lowered their expectations for the outlook, they also point to rising wages and job creation as reasons for optimism. Last month, they classified growth risks as having œmoved to the downside, yet stopped short of changing their guidance on ultra-low interest rates, let alone resuming bond buying.

Data since that meeting have signaled continued deterioration. What was mostly a manufacturing and export-led slowdown is starting to spill into services, purchasing managers™ indexes showed this week, and an anticipated rebound in industry was pushed further out by unexpected declines in German and Spanish output.

Company earnings reports appear to underscore the struggles. Infineon Technologies said Tuesday it plans to reduce investments, arguing that high levels of uncertainty have sidelined customers. GEA Group issued a profit warning on Thursday citing further worsening macroeconomic conditions.

In its forecasts, the Commission predicts the 19-nation euro-area economy will expand 1.3 percent this year, down from 1.9 percent projected in November. For 2020, it sees growth at 1.6 percent.

Source : Bloomberg

RELATED NEWS

BOE Rate Cut in Doubt Amid Signs of Post-Election Growth Bounce
Friday, 24 January 2020 16:43 WIB

A closely watched measure of U.K. economic activity surged to the highest since 2018 in January, undercutting the case for a Bank of England interest-rate cut next week. IHS Markit's flash index for output across the whole economy jumped to 52.4 as firms cited reduced political uncertainty in the w...

Germany Starts to Shake Off Slump With Better Start to 2020
Friday, 24 January 2020 15:49 WIB

Germany economy took a big step to putting the horrors of 2019 behind it, opening the new year with a pickup in activity and business confidence. IHS Markit's composite Purchasing Managers' Index rose to a five-month high of 51.1 in January, beating forecasts for a reading of 50.5. While manufactur...

Australia jobless rate falls to 9-month low, may head off rate cut
Thursday, 23 January 2020 08:59 WIB

Australian employment outpaced forecasts for a second month in December pushing the jobless rate to a nine-month low, a much-needed improvement that could forestall a near-term cut in interest rates. The local dollar climbed 0.47% to $0.6874 as the market pared the chance of an easing from the Rese...

U.K. Retail Sales Extend Worst Run on Record Despite Discounting
Friday, 17 January 2020 16:47 WIB

U.K. consumers stayed away from the stores during the key Christmas trading period, despite widespread discounting and a break in the political impasse over Brexit.  The volume of goods sold in stores and online fell 0.6% in December, confounding expectations of a 0.6% increase. Sales excludin...

China's Economy Grew 6% in Fourth Quarter as Demand Stabilized
Friday, 17 January 2020 09:14 WIB

China™s economy stabilized last quarter after slowing to the slowest pace in almost three decades, as rising demand and easing trade tensions supported sentiment. Gross domestic product rose 6% in the final quarter of 2019 from a year earlier, the same as in the previous three-month period a...

ANOTHER NEWS
Nikkei drops, tourism shares hit by China virus concerns
Monday, 27 January 2020 10:07 WIB Japanese shares tumbled on Monday, with tourism-related stocks taking a fresh hit, on fears that a virus outbreak originating from China could be more deadly and harder to contain than initially thought. As of 01:55 GMT, the Nikkei share average...

DISCLAIMER

Seluruh materi atau konten yang tersaji di dalam website ini hanya bersifat informatif saja, dan tidak dimaksudkan sebagai pegangan serta keputusan dalam investasi atau jenis transaksi lainnya. Kami tidak bertanggung jawab atas segala akibat yang timbul dari penyajian konten tersebut. Semua pihak yang mengunjungi website ini harus membaca Terms of Service (Syarat dan Ketentuan Layanan) terlebih dahulu dan dihimbau untuk melakukan analisis secara independen serta memperoleh saran dari para ahli dibidangnya.