Euro Area Toughens Up as China Deals Blow to Global Fortunes

Domestic demand, a major driver of German growth in recent months, is showing signs of improvement in other European countries too, and trade within the 19-nation bloc is picking up. That‘s fortuitous timing -- just as China, one of the biggest destinations for the region‘s exports, seems increasingly less of a sure bet.

„There are quite some things that are supporting the domestic euro-zone economy,“ said Aline Schuiling, senior economist at ABN Amro Bank NV in Amsterdam. „Investment is gaining some strength and domestic demand is improving. Assuming a soft landing in China, we think the euro zone will continue to grow robustly.“