According to the Economic and Steel Market Outlook 2018-2019/Q3 2018 Report from the Economic Committee of the European Steel Association (EUROFER), in the first quarter of this year economic growth in the EU slowed down to 0.4 percent quarter on quarter, compared with 0.7 percent growth in the final quarter of 2017. The moderation of EU growth was, to a large extent, the result of a weaker net trade performance as EU exporters began to experience the negative impact of the slowing global economy and the strength of the euro versus other major currencies. In the first quarter, the contribution of domestic demand to economic growth in the EU remained positive, although investment growth also slowed in comparison with the previous quarter.
The EUROFER report indicated that the EU economic growth this year and next will be driven mainly by domestic demand. The contribution of net exports to economic growth in the EU looks set to diminish against the backdrop of trade tensions between the US and its trade counterparts flaring up with a potentially negative impact on global economic growth and international trade.
EUROFER’s third quarter 2018 outlook forecasts EU GDP growth at 2.1 percent in 2018 and 1.8 percent in 2019.