The European Union is paying the price for the continuing uncertainty over Brexit and the ongoing US-China trade war with a notable drop in its exports. The latest Organization for Economic Cooperation and Development data show trade remained weak across all G20 economies in the third quarter of 2019. The OECD even warned the slowdown is particularly pronounced in the EU, with its exports contracting by 1.8 percent and imports 0.4 percent.
Since the second half of 2018, the eurozone’s economy has faced multiple challenges, including slowing economic growth.
First, the budgetary conflict between the European Commission and the Italian government has had a serious negative impact on the eurozone’s banking industry and financial market. And second, since the United Kingdom is a big export market for the EU, a no-deal Brexit would deal a heavy blow to EU-UK business relations.