The euro zone sights recession with stagnant GDP and employment in September
The euro zone economy stagnated in the third quarter of the year in relation to the previous quarter, with a advance of 0.2% compared to the 0.7% to which it had grown between April and June. The data published this Tuesday by Eurostat, the community statistics office, also confirm a loss of dynamism in employment and place the region closer to the technical recession that, according to the European Commission, will occur between the end of this year and early next. Then, the GDP of all the countries that share the euro will presumably chain two consecutive quarters down, in a projection shared by other organizations such as the International Monetary Fund (IMF) or the European Central Bank (ECB).
The data for the European Union for Twenty-seven paint a similar picture, although the slowdown is even more intense, since the GDP of the group of countries advances by 0.2% quarterly, compared to the 0.8% that it did in the quarter above, in the midst of the crisis generated by the war in Ukraine and the rise in energy prices. Both variables have triggered inflation to record highs in the euro zone (it marked 10.7% in October in the euro zone, a maximum since the entry into circulation of the common currency) and have put additional pressure on the European Central Bank, which is forced to maintain its policy of increasing rates in an increasingly weaker macro environment and in which the labor market also suffers.
Employment barely advanced 0.2% in both regions in the third quarter, compared to the 0.4% that it had done in the previous period. In year-on-year terms (if the data are compared with those of the same quarter just one year ago), GDP grew by 2.1% in the euro zone and by 2.4% in the EU as a whole between July and September, below from 4.3% to which they advanced in the second quarter.
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