Europe's economic outlook just took a turn for the worse.
Two boys stand at the river Main near the European Central Bank in Frankfurt, Germany, after sunset on Friday, Sept. 8, 2023. – The European Union has lowered its forecast for economic growth this year and next, saying inflation is taking a heavy toll on people's willingness to spend in shops — while higher interest rates are sharply restricting the credit needed for investment and purchases.
The revised forecast Monday from the European Commission, the EU’s executive arm, comes as fears of recession grow and as thethis week on whether to keep raising rates that are aimed at getting the inflation under control.1.1% projected in the spring forecast"Weakness in domestic demand, in particular consumption, shows that high and still increasing consumer prices for most goods and services are taking a heavier toll than expected," the commission said in a statement.
Surveys of purchasing managers show that economic activity is contracting in all major eurozone economies, according to Alexander Valentin, senior economist at Oxford Economics, data that “add to mounting recession risks.” Still, the current state of the economy doesn't resemble a typical recession, because unemployment is at record lows and wages are gradually catching up to the purchasing power lost to inflation as workers demand and get more.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Europe's economic outlook falls as high prices plague consumer spendingEurope's economic outlook just took a turn for the worse. The European Union's executive commission on Monday cut its forecast because high inflation is still discouraging consumers from spending money.
Read more »
Biden, Modi and EU unveil rail and shipping project linking India to Middle East and EuropePresident Joe Biden and his allies have outlined plans to create a rail and shipping corridor linking India with the Middle East and ultimately Europe
Read more »
Biden, Modi and EU unveil rail and shipping project linking India to Middle East and EuropePresident Joe Biden and his allies on Saturday announced plans to build a rail and shipping corridor linking India with the Middle East and Europe, an...
Read more »
What it's like in Europe's popular crypto haven Portugal as the U.S. cracks downQuality of life, bitcoin-friendly tax laws and a huge influx of expats have made Lisbon one of the crypto capitals of the world.
Read more »
India-Middle East-Europe Economic Corridor to Be Unveiled at G20Europe, the Middle East and India will on Saturday unveil plans to create a modern-day Spice Route, in a challenge to China's Belt and Road.
Read more »
At G-20, Biden announces ambitious corridor connecting India, EuropeSenior administration officials view the corridor as a way to open up the flow of both energy and digital information, as well as have Israel work with historic adversaries like Saudi Arabia.
Read more »