Export weakness under the microscope: Where are the headwinds in the euro area coming from?

Trade conflicts, Brexit, sanctions, geopolitical confrontations and now the coronavirus outbreak: Difficult international conditions are putting constant pressure on global trade. This is not just afflicting Europe’s exporters but also causing a noticeable slowdown in economic activity in the euro area.

However, the weakness was not spread equally across all sales markets of European exports last year. Rather, the loss of momentum since 2017 has been mainly due to China and the dynamic Asian economies that are closely intertwined with that country. So in addition to the trade conflict, other factors such as the transition of the Chinese growth model, the accelerated expansion of e-mobility and the downswing in the global electronics cycle have probably also played a role in the region’s slowing demand for European goods.

Export weakness under the microscope: Where are the headwinds in the euro area coming from?(PDF, 86 KB, non-accessible)