The economies of eurozone countries have entered a long-term recession that will last until at least mid-2024. This was reported by RIA News with reference to analytical materials of foreign experts.
According to Eurostat, from July to September the EU economy contracted by 0.1% compared to the previous quarter. This was the second negative reading in a row, following minus 0.1% in the second quarter. Investment bank Nomura emphasizes that such dynamics indicate a technical recession. At the same time, annual Eurozone GDP growth stood at just 0.1% in the third quarter.
The main reason for the decline is the economic problems experienced by EU locomotives. Compared with the same periods last year, Germany’s GDP fell by 0.2% in the second quarter and increased by 0.1% in the third quarter. France – increase by 0.5% and decrease by 0.1% respectively.
High energy prices, inflation and weak demand hinder the development of industry and trade. PMI business activity indexes in Germany and France have been below 50 points for months, indicating that the market is deteriorating.
Most experts agree that a sustainable recovery in the EU economy should not be expected in the coming quarters.
“Eurozone countries will balance between stagnation and stagnation until at least mid-2024,” the Pictet Group said.
Bloomberg had previously written that the euro zone would enter recession at the end of 2023 for the first time since the pandemic.
Previously Volodin named Causes of stagnation in the European Union.