The euro zone’s GDP expansion in the current quarter beat analysts’ estimates, but Germany, the region’s largest economy, stalled, pointing to an asymmetric expansion in the region that continues to face record inflation and uncertainty over power amid Russia’s war in Ukraine.
According to data published by the EU statistics office Eurostat, the GDP of the 19 euro countries grew by 0. 7%, comfortably exceeding analysts’ growth estimates of 0. 2%.
Spain and Italy recorded strong growth of 1. 1% and 1% respectively, helped by the return of tourists to the country the summer following the end of Covid lockdowns, Bloomberg reported.
France, whose economy through 0. 2% in the first quarter, also exceeded estimates of expansion of 0. 5% in the current quarter.
However, the euro zone’s largest economy remained a major exception, recording a GDP expansion of 0%, as its industry continued to face the risk of a possible Russian fuel outage during the critical winter months.
Austria recorded a GDP expansion of 0. 5% in the quarter, while Portugal’s economy fell by 0. 2% during the same period.
8,9 %. This is the eurozone’s annual inflation rate for the month of July 2022, Eurostat reported on Friday. This is an all-time high for the region, up from the previous record of 8. 6% last month. Energy inflation for the month stood at 39. 7%. , as the region faces pressure on Russia’s energy source as it retaliates against the bloc’s sanctions following its invasion of Ukraine.
Germany attributed its 0 expansion to the demanding situations of the global economy,” he said: adding the Covid-19 pandemic, chain disruptions and the war in Ukraine.
The U. S. economy reported worse-than-expected second-quarter figures on Thursday, raising fears that a recession is approaching. According to information released by the Bureau of Economic Analysis, U. S. GDP is reported by the U. S. The U. S. economy fell 0. 9% in the quarter ending in June.
Despite the unforeseen positive figures, the region continues to face the risk of recession as it prepares for an imagined shutdown of Russia’s herbal fuel materials. The Russian herbal fuel source, which is a must for German industry and a key means of power generation in several EU countries, through the key Nord Stream 1 pipeline has been reduced to 20% of its total capacity more earlier this week, Russian officials blamed the problems of the apparatus. Previously, members of the European Union had agreed to reduce their fuel consumption by up to 15% until March 2023, to help overcome existing fuel shortages. Last month, German Economy Minister Robert Habeck warned that Russia’s materials restriction could lead to a collapse similar to that of Lehman Brothers in the continent’s force sector.
‘Recession is in the air’: Germany stalls in second quarter (Reuters)
Eurozone crushes estimates despite Germany’s weakness and peak inflation (Bloomberg)