According to Brian Martin, analyst at ANZ, the deepening downturn in the European Union’s economy is a source of significant concern for global growth as EU accounts for 15% of world import volumes.

“Services account for 75% of EU GDP and jobs. Emerging evidence of persistent weakness in that sector has negative implications for employment growth and domestic demand. Adding to uncertainty is the recent rise in EU-US trade tension. Whilst the EU wants to settle the Airbus dispute, there is a risk that tension could spill over. President Trump will decide about auto tariffs in mid-November. Europe is deeply integrated in the world economy and global value chains. A slowdown in European manufacturing and domestic demand would have negative repercussions for import partners.”