Now that Brexit has become reality, the uncertainties for the eurozone economy abound. A collapse in exports to UK could have a negative impact on the eurozone economy even if it is not likely to cause a recession by itself. UK accounts for only about 7% of total exports of the eurozone countries.
The political outlook is in our view the main source of concern as other countries could start considering leaving the EU. This could depress business and consumer confidence, lowering investments and consumptions.