There were more worrying signs for the eurozone’s largest economy yesterday, as German exports dropped by 0.8% in September. Balance of trade figures showed that the surplus decreased to €18.4 billion in September from €24.2 billion in the same month a year earlier. Exports had been expected to increase by 0.3%, so the drop of 0.8% was particularly concerning. While monthly figures are notoriously volatile, German exports have looked underwhelming for a few months now.
The aforementioned European Commission forecasts were published, with growth across the eurozone expected to slow over the next couple of years. Trade wars, rising oil prices and rising geopolitical tensions are all expected to contribute to the slowdown, although these factors will likely take hold across the world. Obviously that’s not a good thing, but it’s important to remember how it will all be relative.
Nothing of note is scheduled for release in the eurozone today, but attention will be on the UK’s GDP growth rate for the third quarter of 2018, as well as anything Trump might say, do or Tweet.
