More great stuff from the excellent Damien Boey today:
European growth has slowed sharply in recent quarters. In 4Q, GDP expanded by a meagre 0.2%. This followed another meek 0.2% growth reading in 3Q. Year-ended growth has slowed to 1.2% in 2018 from 2.7% in 2017.
Compositionally, there are reasons to be concerned as well. For example, the Italian economy has entered technical recession, straining budget negotiations with the European Union. Retail sales growth has slowed sharply, especially in the core of the euro zone. Slower consumption growth is worrying, because it means that the recent collapse in industrial production is more than just an inventory correction.
