Credit rating agency S&P Global has today cut its 2019 euro zone growth forecast to 1.1% from 1.6%. 

The rating agency said the chop to its forecasts had come following a slowdown in major economies like Germany and Italy towards the end of last year.

It said it expected both countries to "significantly underperform" the euro zone average this year. 

"External demand is still likely to remain muted," it added.

But S&P also said it believe GDP growth should move back to trend and rebound to a 1.4% rate in 2020 and 2021.

"At the end of 2018, the European economy lost some air in its tyres, worrying investors about a potential recession that helped trigger a bout of volatility," it said. 

S&P also said that monetary policy is also set to remain accommodative for longer, with its economists now expecting the ECB's first rate hike to come in January 2020. 

"A more dovish ECB also means that the euro exchange rate will stay weak for another year, acting as a sort of buffer in a phase of weaker global trade," it added.