Goldman Sachs Research estimates Euro-area growth will slow from 1.9% to 1.6% in 2019 as the benefits from past tailwinds fade. While underlying momentum has slowed, recent data — such as a sharp, but temporary, drop in the auto sector due to a change in environmental rules — has exaggerated the slowdown. Financial pressures in Italy, the continuation of global trade tensions and Brexit will challenge the regional outlook in the upcoming year.
