By Joshua Kirby and Ed Frankl The eurozone is likely to grow at a slower pace than previously expected this year and next amid weak domestic consumption and...
The eurozone is likely to grow at a slower pace than previously expected this year and next amid weak domestic consumption and flagging global demand, with the powerhouse German economy notably set to shrink, according to fresh figures published by the European Union executive Monday.
"High and still increasing consumer prices for most goods and services are taking a heavier toll than expected in the spring forecast," the commission said. Eurozone consumer prices rose 5.3% in August, failing to ease from the previous month. Germany's economy--the largest in the bloc--is now expected to contract, according to the EC's new estimates. Gross domestic product should be 0.4% lower on year in 2023, compared with a previous estimate of slight growth. It would be the only one of the bloc's major economies to slip backward, according to the forecasts, which see slightly higher growth for France and Spain than previously estimated.
The higher forecast comes despite an easing of the energy bills that spiked last year after Russia's fullscale invasion of Ukraine, the commission said. Higher oil prices might slow the downward trajectory of inflation next year, but prices for services and food should ease steadily amid high interest rates, lower input prices and smoother supply chains, the commission said.
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.
EU Commission lowers Eurozone GDP forecast amid recession risksIn its quarterly assessment published on Monday, the European Commission downgraded its projections for the Eurozone’s economic growth for this year a
Read more »
Hurricane Lee update: Lee weaker but still Category 3It's still too soon to say if Lee will come close to the US.
Read more »
NZD/USD reclaims the 0.5900 area amid the weaker USD, eyes on US CPIThe NZD/USD pair recovers some lost ground and reclaims the 0.5900 mark during the early Asian trading hours on Monday. The absence of economic data o
Read more »
USD/CHF trades with modest losses amid weaker USD, manages to hold above 0.8900The USD/CHF pair opens with a bearish gap on the first day of a new week, albeit manages to hold its neck above the 0.8900 mark through the Asian sess
Read more »
AUD/USD advances above the 0.6420 mark amid the weaker USD, US soft landing hopeThe AUD/USD holds above the 0.6400 area during the Asian session on Monday. The uptick of the Aussie (AUD) is supported by the weakening of the US Dol
Read more »
AUD/USD clings to strong intraday gains on weaker USD, remains below mid-0.6400sThe AUD/USD pair catches aggressive bids on the first day of a new week and sticks to its strong intraday gains, near a multi-day peak through the fir
Read more »