China may be slowing, but Europe is dangling over the cliff

February 19, 2019 – Bloomberg reported last week that Europe looks like the real weak link in the global economy.

According to the report, “Industrial production across the 19-nqtion euro area is falling at the fastest pace since the financial crisis, and deteriorating demand is evident as the region finds itself squeezed between international and domestic pressures.”

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The suddenness of the drop reflects that Germany’s growth has been ambushed by drop in its manufacturing sector. At the same time, France is experiencing a halt in household spending, not thanks to the Yellow Vests protests. These two countries account for nearly half of Europe’s economy.

It summarizes by claiming that growth is at risk of barely topping 1 percent this year, a sharp slowdown from 2018. Germany, France and Italy are all in trouble.

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