Current location:Universal Update news portal > health
Eurozone economy on brink of recession
Universal Update news portal2024-05-21 10:03:23【health】8People have gathered around
IntroductionA symphony of light consisting of bars, lines and circles in blue and yellow, the colors of the Euro
A symphony of light consisting of bars, lines and circles in blue and yellow, the colors of the European Union, illuminates the south facade of the European Central Bank (ECB) headquarters in Frankfurt, Germany, Dec 30, 2021. [Photo/Agencies]
A lack of economic growth in three out of the last four quarters has left the eurozone heading into winter on the brink of a recession.
Newly released figures showed a worse-than-expected performance for the third quarter of the year, where the economy shrank by 0.1 percent, despite the rate of inflation having fallen by a larger than anticipated amount, from 4.3 percent in September to 2.9 percent in October.
"A drop in eurozone GDP keeps a small technical recession in the second half of 2023 a realistic prospect," Bert Colijn, senior eurozone economist at ING bank, said. "With inflation falling faster than expected, the debate within the European Central Bank's governing council is set to turn more dovish, but don't expect rate cuts any time soon."
Germany, the economic heart of the continent which so often sets the tone for the fortunes of its neighbors, saw a 0.1 percent economic contraction, while Italy's remained unchanged. France grew by just 0.1 percent and Spain recorded 0.3 percent growth.
Latvia and Belgium saw the biggest growth in the bloc, although moderate figures, while Ireland suffered the sharpest contraction, with a reduction of 1.8 percent.
"The big picture is that the eurozone is struggling," Jack Allen-Reynolds, deputy chief eurozone economist at Capital Economics, wrote in a note quoted by CNN. "It has only grown by 0.1 percent over the past year, and the timeliest business surveys consistently point to activity declining at the start of (the fourth quarter)."
In September, the European Central Bank, or ECB, put up interest rates for a 10th consecutive time, with the deposit rate reaching 4 percent, the highest rate since the launch of the euro in 1999.
This was a move designed to bring down inflation, with ECB President Christine Lagarde saying at the time that the bank's governing council "considers that the key ECB interest rates have reached levels that, maintained for a sufficiently long duration, will make a substantial contribution to the timely return of inflation to the target".
The latest larger-than-expected fall in inflation is an encouraging sign, but the run of successive interest rate rises has had a damaging impact on growth.
Salomon Fiedler, an economist at Berenberg Bank, told The Daily Telegraph newspaper that the latest fall suggested the ECB was "almost certainly done with its rate hike cycle", but Tomas Dvorak, a senior economist at Oxford Economics, said the full impact on the growth of higher interest rates had not yet been felt.
"The eurozone is in for a period of economic stagnation, with growth unlikely to return until real income growth turns sufficiently positive and the peak impact of monetary tightening has passed," he warned.
Address of this article:http://algeria.shellye-mcdaniel.com/article-29f099893.html
Very good!(49851)
Related articles
- Nuggets blow 20
- More Foreign Organizations Support Chinese Women in Battle Against COVID
- ACWF Awards 10 Outstanding Women as National March 8th Red
- ACWF Awards 10 Outstanding Women as National March 8th Red
- Not so Cool Britannia! Noel Gallagher gives damning verdict on Keir Starmer
- CBA Roundup: Liaoning smashes Shanxi, Guangdong edges Fujian
- Schoolgirls of Yi Ethnic Group Share Stories in Poverty Relief at ACWF Headquarters
- SCO Children's Online Art Exhibition Opens
- Nuggets blow 20
- Schoolgirls of Yi Ethnic Group Share Stories in Poverty Relief at ACWF Headquarters
Popular articles
Recommended
Shooting injures 2 at Missouri high school graduation ceremony
Enchanting Sydney's streets with Chinese music
ACWF Launches Online Lessons for Women Internet Users
National Survey on Chinese Women's Social Status Kicks Off
Dodgers acquire pitcher Yohan Ramírez from Mets for cash
Jiang to bear China's flag at Hangzhou Asian Para Games closing ceremony
More Foreign Women's Organizations and Overseas Chinese Support China in Battle Against NCP
Shen Yueyue Underlines People
Links
- Elias Díaz gets key hit as the Rockies rally for a wild 10
- Some Nikki Haley voters are hanging on to her candidacy and, like her, refuse to endorse Trump
- AP Week in Pictures: Global
- Buccaneers add offensive line help, select Duke C Graham Barton in NFL draft
- Rams make a rare first
- Auto industry insiders highlight interdependence between China, Europe
- Steelers bolster offensive line, take Troy Fautanu from Washington with 20th pick in NFL draft
- Perez homers as KC beats Blue Jays 2
- Driver charged with negligent homicide in fiery crash that shut down Connecticut highway bridge
- Magic hand Cavaliers worst playoff loss in franchise history, win 121