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The Eurozone Braces for a Rocky Year

MIN READFeb 26, 2020 | 10:00 GMT

This photo shows fanned-out 50, 100, 200 and 500 banknotes of the euro, the currency of the eurozone.

An image of fanned-out banknotes of the euro, the currency of the eurozone. A slew of various economic and political risks will hinder growth in the European Union's currency area over the next year.

(Shutterstock/VAKS-Stock Agency)

Households, companies and investors alike should brace for a year of lackluster economic growth in the eurozone. The European Commission expects the 19-member currency area to grow by only 1.2 percent this year -- the same rate as 2019, but below the 1.9 percent and 2.5 percent growth seen in 2018 and 2017, respectively. While uncertainty about the future of global trade has taken a toll on Europe's economic climate and manufacturing sector, domestic consumption has nonetheless remained strong due to rising employment and modest increases in wages. The next few months, however, will present multiple sources of geopolitical risk that will continue to stall economic expansion across the eurozone, and could potentially lead to temporary recessions in countries such as Italy....

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