The eurozone is in a difficult situation: trade is not going well, industrial production is falling and factory orders are in a downward trend. The risk is that things may get worse - Brexit without a deal, a European trade war with the US or a collapse in China would be big shocks for the block. While the European Central Bank is preparing to inject more stimulus into the economy, calculations show that 7.6% of Europe's economic activity is directly exposed to trade with the United Kingdom, the United States and China. Given the magnitude of these risks and the bottlenecks already posed to the sentiment, the ECB will hardly wait long before they materialize their plans and act.
Source: Bloomberg Finance L.P.
Chart: Used with permission from Bloomberg Finance L.P.
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