The euro area of 19 countries including Germany, France and Italy is
forecast to slow from a growth rate of 2.1% this year to 1.9% in 2019
and 1.7% in 2020, as the wider region enters a period of weaker growth following the strongest year of the past decade in 2017.
It comes as the wider global economy is unsettled by Donald Trump’s trade disputes with China and Europe, which have reduced demand for manufactured goods and stifled business investment.
Despite the weaker outlook for the British economy, growth figures have shown Britain managing a better performance than the eurozone over recent quarters.
Statistics due on Friday are expected to show UK economic growth of 0.6% for the third quarter. Economists at HSBC believe Germany is likely to record its first drop in quarterly economic output, of 0.1%, for more than three years.
In the IMF’s latest health check on the region, it warned the European economy would probably run into turbulence in the next few years.
The Washington-based fund said all likely Brexit outcomes would have a negative cost for the economy, although it warned a no-deal scenario would have the biggest downsides.
“No-deal Brexit would lead to high trade and non-trade barriers between the UK and the rest of the EU, with negative consequences for growth,” it said.
The IMF also warned the populist Italian government to tackle its high levels of government borrowing before time runs out.
Read more: British economic growth tipped to be slowest in Europe next year | Business | The Guardian
It comes as the wider global economy is unsettled by Donald Trump’s trade disputes with China and Europe, which have reduced demand for manufactured goods and stifled business investment.
Despite the weaker outlook for the British economy, growth figures have shown Britain managing a better performance than the eurozone over recent quarters.
Statistics due on Friday are expected to show UK economic growth of 0.6% for the third quarter. Economists at HSBC believe Germany is likely to record its first drop in quarterly economic output, of 0.1%, for more than three years.
In the IMF’s latest health check on the region, it warned the European economy would probably run into turbulence in the next few years.
The Washington-based fund said all likely Brexit outcomes would have a negative cost for the economy, although it warned a no-deal scenario would have the biggest downsides.
“No-deal Brexit would lead to high trade and non-trade barriers between the UK and the rest of the EU, with negative consequences for growth,” it said.
The IMF also warned the populist Italian government to tackle its high levels of government borrowing before time runs out.
Read more: British economic growth tipped to be slowest in Europe next year | Business | The Guardian
