{"id":26473,"date":"2023-11-01T12:59:00","date_gmt":"2023-11-01T12:59:00","guid":{"rendered":"https:\/\/harvestmoonnews.com\/?p=26473"},"modified":"2023-11-01T12:59:00","modified_gmt":"2023-11-01T12:59:00","slug":"eurozone-hammer-blow-as-gloomy-forecast-warns-of-sluggish-economic-growth","status":"publish","type":"post","link":"https:\/\/harvestmoonnews.com\/world-news\/eurozone-hammer-blow-as-gloomy-forecast-warns-of-sluggish-economic-growth\/","title":{"rendered":"Eurozone hammer blow as gloomy forecast warns of \u2018sluggish\u2019 economic growth"},"content":{"rendered":"

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Disappointing data indicating the Eurozone economy contracted in the third quarter of 2023 has prompted analysts to forecast \u201csluggish growth\u201d throughout the monetary union for at least two years.<\/p>\n

And Germany, traditionally the European Union\u2019s economic powerhouse, is \u201cstruggling\u201d, the UK-based Centre for Economics and Business Research has warned.<\/p>\n

The analysis was in response to a preliminary estimate published by Eurostat, the European Union\u2019s statistics division, yesterday indicating a 0.1 percent contraction in Q3, 2023.<\/p>\n

The figures contrasted with the previous period, which had seen an upwardly revised 0.2 percent expansion in Q2 2023, up from the previous estimate of 0.1 percent.<\/p>\n

The strongest growth among the 19 countries signed up to the single currency came in Latvia, where output rose by 0.6 percent.<\/p>\n

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France and Spain also saw growth of 0.1 percent and 0.3 percent respectively – but Germany\u2019s economy shrank by 0.1 percent.<\/p>\n

Speaking yesterday, Pushpin Singh, the CEBR\u2019s Senior Economist, said: \u201cThe currency bloc continues to be affected by elevated inflation and the ECB\u2019s response to higher interest rates, the impacts of which continue to feed through to the economy.<\/p>\n

\u201cThe ECB, trying to balance the need to fight inflation with the desire to avoid unnecessary economic harm, opted to pause its monetary tightening campaign at its latest Governing Council meeting last week. \u201c<\/p>\n

He added: \u201cNonetheless, key interest rates in the currency bloc are expected to remain elevated as the ECB looks to stamp out lingering price pressure, and this will likely act as a drag on growth.<\/p>\n

<\/p>\n

\u201cAs such, Cebr forecasts that the Eurozone economy will face sluggish growth over this year and next.\u201d<\/p>\n

An upwardly revised 0.1 percent expansion in Q2 means Europe\u2019s largest economy has avoided a technical recession over the last year, the CEBR\u2019s report said.<\/p>\n

However, it added: \u201cWith quarterly output growth either stagnating or in contractionary territory in four out of the last six quarters, there are clear signs that the German economy is struggling.<\/p>\n

\u201cQ3\u2019s reading highlights the prevailing challenges confronting the Eurozone.<\/p>\n