Skip to main content

Rising UK trade surplus another risk for the euro-zone

The euro-zone’s trade surplus with the UK is likely to fall as a result of sterling’s depreciation. We think that this will reduce euro-zone GDP growth by about 0.1 percentage points per year in 2017 and 2018, but the effect could be up to 0.2 percentage points. The most likely outcome lies somewhere in the middle, at around 0.1 ppts. In an economy that we think will grow by just 1% next year, this would be significant, making it even more difficult for policymakers to achieve the economic growth and inflation that the region so sorely needs.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services


Get access