EuroZone Economy Handles Brexit But Unsure Of Trump’s Policies
The Brexit vote was shocking to the Eurozone economy, but the economy followed a growth path in the past three months. Even though Britain left the European Union, the Eurozone economy fared well, considering the circumstances. However, uncertainty prevails now after the winning of Donald Trump. Experts are unsure how the economy of the Eurozone will unfold in 2017.
The trade policies will undergo a major change according to the election campaign of Donald Trump. However, the administration has not revealed any possible changes. To support growth, the European Central Bank is expected to hold on to its loose monetary policy. In the third quarter of this year, the Gross Domestic Product (GDP) of the Eurozone increased by 0.3%. The statistics office of the EU confirmed this figure, adding that it was expected.
The political inexperience and impulsive nature of the president-elect Donald Trump have caused a shock in the global economy. His policies are less predictable and so, the outlook for Eurozone economy is gloomy at the moment. The medium term growth of the economy is hindered by the negotiations pertaining to Brexit between London and Brussels. Major exporters such as Germany are anxious about the protectionist policies of Donald Trump.
The growth in the Eurozone was mainly driven by the local demand as the spending increased. UniCredit economists assure that even though the growth has slowed down, it is not a cause for concern. As the global demand for German goods increased again, the final quarter will have a positive growth.
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