Economics
Euro-Area Economy's Bumpy 2018 Keeps ECB on Edge About Risks
- GDP rose just 0.2% in third quarter, less than 0.4% estimate
- Economic confidence in region falls more than anticipated
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The euro-area economy’s bumpy ride in 2018 may not be over just yet, with risks both near and far to keep Mario Draghi on edge when it comes to the next policy step.
From the global trade dispute to Italy’s budget battles, threats remain “prominent,” to use the words of the European Central Bank president. On top of the impact of uncertainty on investment, higher oil prices may drain consumer confidence. Already, weaker surveys and sentiment measures suggest there’s no significant rebound coming soon after the economy grew the least in four years in the third quarter.