Eurozone Economic Growth to Remain Weak in 2020: Reuters Poll - Forex News by FX Leaders
Eurozone economic growth forecasts revised lower

Eurozone Economic Growth to Remain Weak in 2020: Reuters Poll

Posted Friday, January 17, 2020 by
Arslan Butt • 1 min read

According to a recent Reuters poll, the slowdown in Eurozone’s economy has likely bottomed out and the chances of the economy entering a recession have faded. However, economic growth and inflation outlook continue to remain somewhat lukewarm.

The improvement in external risks such as the US-China trade war and Brexit have helped boost the market sentiment in the most recent poll, but expectations for GDP growth and pick-up in inflation in 2020 and 2021 remain tepid. Although economic growth may not weaken any further, unless the trade dispute is fully resolved, Eurozone GDP may not pick up anytime soon either.

Eurozone’s economy is expected to grow at around 1.0% in 2020, less than 2019’s expectations for a 1.2% growth. This would be the weakest pace of expansion in the Eurozone economy since 2013. In addition, inflation is also likely to stay well below ECB’s target of around 2%, at least till 2022.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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