Eurozone: Global economic headwinds show their impact - Commerzbank

Dr Jörg Krämer, Chief Economist at Commerzbank, suggests that the growth of the global economy outside the euro zone slowed considerably in the course of 2015.

Key Quotes

“The PMI for global manufacturing outside the euro zone has only just been in expansionary territory since mid-2015.

The euro zone economy will not be able to decouple from the global economy over the long-term. Since the start of the year, problems in emerging markets seem to be spoiling the mood of companies in the euro zone.

The positive effect of the euro’s strong depreciation in the second half of 2014 and early 2015 is running out. Companies can no longer compensate for weaker global demand by expanding their market shares.

But consumer demand stimulated by the energy price slide will cushion the export weakness for a while yet. While sentiment indicators will probably trend slightly lower still in the coming months, we do not expect a sharp fall in sentiment.”