The European economy continued to weather external headwinds in the second half of 2019 thanks to the strength of domestic drivers. Growth in the euro area turned out better than expected in the third quarter but disappointed at the end of the year. Leading indicators suggest that manufacturing output may stabilise in the months to come, although an upturn is not yet on the cards. However, with hints of a bottoming out in global trade flows, and as the dampening impact of domestic inventory adjustment fades, a trough may have been reached. With continued real income gains, a supportive policy mix and a construction ... (full story)