The European Union is enjoying widespread growth, with every economy in the Union expanding for the first time since 2007. The EU economy hasn’t enjoyed such stable and widespread growth since before the Great Recession. Further, many economists are projecting that the EU economy could enjoy stable and sustained growth over the next few years.

To be honest, we’re wary of such long-term projections. While the EU economy appears to be stronger than it has been for years, economic growth remains somewhat slow. Projections for this year and next point to an overall annualized growth for the entire Union weighs in at only 1.8%. Widespread growth is certainly a good thing, but with growth generally so slow, it’s fair to wonder if the economy is merely bottoming out.

Regardless, the stable growth the EU economy is enjoying is a positive sign. While we’re not ready to bust out the champagne, we are sighing in relief. The EU economy has been perhaps the weakest big link in the global economy over the past decade. The United States is enjoying strong and stable growth. Many Asian and Latin American countries have likewise been enjoying steady economic expansion. Europe, however, has been lagging behind.

High Risks for EU Economy

It should be noted, however, that many European Union officials are acknowledging high risks in their projections. Specifically, the intent of American president Donald Trump and his “America first” policies have many EU policy makers worried. Trump could quickly erect trade barriers, which would throw the world economy into chaos.

Further, policy makers have also warned that negotiations over the pending Brexit could also cause problems. At this point, it appears that the UK has passed a point of no return, and that it will be leaving the European Union. While markets have adjusted to the shock of the announcement, new developments could cause new turbulence in the EU’s economy.

Also, China remains a mess. The country is suffering with several potential asset bubbles, including real estate and commercial loans. There is also a shadow banking sector that many believe is very toxic. China’s economic growth has slowed in recent years, and should a bubble pop the entire global economy could suffer.

Conclusion: Geographical Diversification is Still a Must

So what’s the lesson here? The EU economy is strong, yes. But there are plenty of risks not only within Europe, but also across the world. One easy way to reduce risk is to diversify. This includes diversifying the financial assets you hold, as well as where you hold them.

Setting up an offshore bank account or overseas holding company or another similar asset could help you protect yourself. Don’t wait until it’s too late! Offshore before financial turbulence hits.