According to Eurostat data, the second quarter growth data of the 19-member Eurozone economy was revised to 0.6 percent on a quarterly basis. The previous estimate was 0.7 percent.
The economy also grew by 3.9 percent on an annual basis, the previous forecast was 4 percent. During this period, employment increased by 0.3 percent.
While the announced data point to the relatively strong course of the European economy, analysts are worried that energy shortages will further increase inflation and the regional economy will enter a recession. According to Bloomberg's survey, the probability of shrinking for 2 consecutive quarters is very likely.
Inflation is expected to average 8 percent in 2022, well above the European Central Bank's 2 percent target. While many officials state that it is necessary to react strongly so that inflation does not become permanent, some economists question how much more interest rates can be increased if the economy enters a recession.
Comments
No comment yet.