Media comment – Eurozone composite PMI release

24th January

Commenting on the composite PMI data for the Eurozone, Katharina Utermöhl, senior economist at Euler Hermes, the world’s leading trade credit insurer, said:

“[Despite a weaker reading,] There are some encouraging signs that suggest the Eurozone’s economy might now have passed the worst of the economic headwinds it weathered last year, which included Brexit worries, the US-China trade dispute and an industrial slowdown in Germany. That said, a drastic turnaround in fortunes is unlikely.

“Industrial production will begin to pick up, but only gradually as factory stockpiles remain elevated. This is particularly prominent in the UK, one of the Eurozone’s biggest trading partners, despite the best efforts of businesses to sell off a glut of stock which had been acquired in the run-up to the country’s anticipated withdrawal from the EU in October. Until this is shifted, demand will remain subdued.

“We expect the Eurozone will witness just a moderate pick-up in export growth, however, with activity still subdued and geopolitical risks around trade continuing to loom large. And while cyclical headwinds may be gradually fading, structural challenges – particularly the ongoing slowdown in Chinese GDP growth – will continue to weigh on activity. We anticipate GDP growth in Germany – the Eurozone’s largest, heavily trade-focused economy – to register just 0.6% GDP growth in 2020.

“Just as unlikely as a dramatic turnaround, though, is a recession for the Eurozone thanks to resilient private consumption. Overall we expect GDP growth to register at 1.0% in 2020 and to moderately pick up in 2021 to 1.3%. While the recovery will likely be slow to gather pace, European firms will welcome a more upbeat economic outlook for the year ahead.”


Media Contacts: 

Euler Hermes Media Relations
Adrian Russell
+44 (0)20 7860 2728

David Bertram
+44 (0)161 235 0300


Jan 18, 2022 | News

UK economic growth to outpace global average in 2022

Global trade will expand above the long-term average this year but will be disrupted by labour and supply chain bottlenecks, amplified by omicron in the first half of the year

Jun 03, 2021

First female CEO for Euler Hermes UK and Ireland

Euler Hermes has appointed Sarah Murrow as CEO of its UK and Ireland business, with effect from 1 June and subject to regulatory approval. Read more !

May 25, 2021

Changes in Board of Management and Regional Management teams

Euler Hermes, the world’s leading trade credit insurer, announces key changes in their Board of Management and Regional Management teams.

Mar 26, 2021

Media comment – Suez is not the only block to global trade

The Suez Canal disruption has the potential to cost the world economy up to $10bn in lost trade for each day. Read more !

Mar 12, 2021 | News

Media comment – UK balance of trade

The combination of Covid-19 and Brexit will ultimately prove to be a long-term drag on growth. Exporters will be particularly hard hit. Read more !

Jan 12, 2021

Brexit could cost UK exporters £25bn as full Covid recovery pushed back to 2023

British exporters could lose out on as much as £25bn of trade in 2021 following Brexit and EU exporters could lose €10bn in 2H 2021. Read more!

Dec 30, 2020

Government extends shield to sustain UK trade

The UK government, the Association of British Insurers (ABI), Euler Hermes – the world’s leading trade credit insurer – and other underwriters have agreed to extend the landmark State Support Scheme to protect intercompany trade into 2021.

Nov 24, 2020 | News

Green2Green Single Risk: a pioneer insurance product

Euler Hermes has launched pioneering product will contribute to tackling climate change by insuring green transactions and investing in certified green bonds.

Oct 01, 2020

Euler Hermes Group announces CEO leadership change

Wilfried Verstraete, CEO and Chairman of the Board of Management, has decided to step down from his operational duties after twelve successful years in the role

Aug 21, 2020

First by your side for the road ahead

We have strengthened and enhanced our tools and are also developing new technologies to help our partners connect the dots and act early.