The eurozone economy is showing few signs of the much hoped-for recovery as the industrial slump continues to crush growth and Germany remains “particularly exposed” to a coronavirus crunch in China.

European Commission forecasts show GDP growth set to plod on at 1.2pc a year for the foreseeable future, with France and Germany set for an underwhelming 1.1pc in 2020, Italy stagnating at 0.3pc and even star-performer Spain slowing from 2pc in 2019 to 1.6pc this year.

“Leading indicators suggest that manufacturing output may stabilise in the months to come, although an upturn is not yet on the cards,” the Commission said.

“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.”

The Commission has based its forecasts on the coronavirus having only a mild impact on the wider economy.

“The baseline assumption is that the outbreak peaks in the first quarter, with relatively limited global spillovers,” it said.