Market Outlook: Eurozone Growth Set to Slow

Forex - ING economist Peter Vanden Houte stated that the unexpectedly strong growth rate of the Eurozone in the third quarter appears unsustainable. "In the three-month period leading up to September, the Eurozone economy grew by 0.4% quarter-on-quarter, marking the strongest growth in the last two years. However, the underlying dynamics look weaker," Houte said. "While the often unstable contribution from Ireland alone added 0.1 percentage points to Eurozone growth, France's GDP increased due to the Olympics. The announcement of the closure of Volkswagen factories and the political uncertainty following the collapse of the coalition government will reduce household consumption in Germany," he added. Houte remarked, "Following Donald Trump's victory, with declining inflation and potential negative sentiment shocks, it is likely that the European Central Bank will reduce interest rates more rapidly."