According to the Fulcrum activity nowcasts, which identified the surge in growth very early last year, the eurozone was still growing at a rate of 3.5 per cent late in 2017. Each of the largest economies in the bloc was doing well: Germany 4 per cent, France 3 per cent, Italy 2 per cent and Spain 3.5 per cent. Economic forecasters and the central bank had become confident that this strong recovery phase would persist throughout 2018. But that has not happened so far.
The latest nowcast results for the eurozone suggest that activity growth has dropped to only 1.2 per cent in early April, with each of the major economies experiencing a sharp decline in growth. Even Germany, which was relatively immune from previous European downturns has recorded a very sharp dip, with growth now down to only around 1 per cent.
That is from Gavyn Davies at the FT.