FXE - 5 Reasons Europe Should Avoid Recession In 2019
By Darren Williams
The euro area faces another challenging year, but we see a continuation of recent soft growth as much more likely than recession. The European Central Bank ((ECB)) is, nonetheless, now likely to delay its first rate hike to 2020, and could also implement fresh credit-easing measures.
Euro-area growth has slowed sharply in recent months, aggravated by one-off factors, which are now starting to fade. Nonetheless, survey data continue to deteriorate, hinting at more persistent weakness. In Germany, for instance, the expectations component of the Ifo Institute for Economic Research business-climate indicator fell