June 9, 2023
The eurozone economy has contracted over the past two quarters, according to cuts released Thursday, which showed output in the bloc fell 0.1% quarterly over both three-month periods. The downgrade, which represents the mildest of technical recessions, spoils recent results a bit eurozone economywhich turned out better than many economists had feared when the bloc
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Eurozone inflation fell more than economists expected, hitting its lowest level since Russia invaded Ukraine more than a year ago, raising hopes that monetary policymakers will be able to stop raising interest rates this summer. Annualized consumer prices in the 20-country common currency bloc rose 6.1 percent year-to-date through May, down from 7 percent in
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Inflation in Germany and France fell faster than economists had expected and reached its lowest level in at least a year, raising hopes that the reduction in price pressure will allow monetary policymakers to soon stop raising interest rates in the eurozone. The fall of the German annual inflation from 7.6% in April to 6.3%
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The European Central Bank has warned that eurozone bond markets are at risk of a sell-off caused by a sudden exit of Japanese investors if the Bank of Japan ends its super-loose monetary policy. “If Bank of Japan decides to normalize its policies, this could influence the decisions of Japanese investors, who have a great
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With high inflation and tightening monetary policy, there is no doubt that the eurozone economy will slow down in the coming quarters; the real question is how much. According to the latest forecasts of our analysts, euro area decline overall in the fourth quarter of 2022 and the first quarter of 2023 before returning to
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People have become more pessimistic about inflation in the euro area, betting that price pressures will remain strong in the coming years, even though they have been easing for most of the past six months. European Central Bank said on Thursday that its latest monthly consumer survey showed their expectations for inflation next year, and
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Eurozone inflation rose slightly to 7 percent in April, complicating the picture for rates at the European Central Bank when they meet on Thursday to set borrowing costs. The consumer price index was worse than the fixed value – from 6.9% in the previous month – which was forecast by economists polled by Reuters. Eurostat,
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Why it’s important: The goal is to control inflation while preventing a recession. The divergence between headline inflation and underlying core inflation reflects volatility due to Russia’s invasion of Ukraine, which sent energy prices to record highs last year and a major driver of high food prices this year. This presents a challenge for policy
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How fast is the eurozone recovering from the impact of high gas prices? The recovery of the eurozone economy from last year’s energy price shock is expected to be confirmed this week by the release of gross domestic product data showing a return to positive growth in the first quarter. The continued decline in energy
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According to the IMF, the eurozone economies have shown remarkable resilience in the face of multiple disruptions. Petya Koeva-Brooks, deputy director of the IMF’s Research Department, told Euronews that the global economy remains on track for a global recovery despite downward adjustments in forecasts. “We were surprised by the resilience that the eurozone economy has
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