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- European Central Bank’s economic bulletin: the direct impact of the slowdown in the Chinese economy on the economic growth in the Eurozone is modest
European Central Bank’s economic bulletin: the direct impact of the slowdown in the Chinese economy on the economic growth in the Eurozone is modest
The European Central Bank (ECB) said in its economic bulletin that the direct impact of the slowdown in the Chinese economy on the economic growth in the Eurozone is modest.
"While trade spillovers from a continued slowdown of economic activity in China are likely to have only a modest impact on euro area GDP, other spillover channels can potentially be important," the central bank said.
The ECB noted that the global uncertainty due to the slowdown in the Chinese economy could have a negative impact on the economy in the Eurozone.
"A rise in global uncertainty could directly affect the confidence of euro area households and firms, hampering consumption and delaying investment decisions. Therefore, the impact on the euro area of a potential further slowdown in China ultimately hinges on the extent to which this slowdown spills over to other emerging markets more generally, and the degree to which the resulting loss of confidence affects global financial markets as well as global trade," the ECB noted.
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