Saturday, 23 September, 2023
E-paper

Eurozone to ‘slip into recession’ as economy falters

  • The Telegraph Online
  • 8 September, 2023 12:00 AM
  • Print news

The eurozone will likely fall into recession in the second half of the year, economists have warned, as figures showed the bloc’s economy grew barely at all in the second quarter of the year.
Gross domestic product (GDP) edged up by a mere 0.1pc in the three months to June, the European Union’s Eurostat data agency said, revising down a previous estimates of 0.3pc growth.
Gross domestic product (GDP) edged up by a mere 0.1pc in the three months to June, the European Union’s Eurostat data agency said, revising down a previous estimates of 0.3pc growth.
Andrew Kenningham, chief Europe economist at Capital Economics, said: “With business surveys having turned down sharply in July and August, construction and industry struggling and the labour market easing, we suspect that the economy will slip into recession in the second half of the year.”
Charlotte de Montpellier, an analyst at ING, said: “The European economy is generally stagnating. It is suffering from high interest rates, energy prices and the global slowdown.”
The data also showed Europe’s largest economy, Germany, slipped into a recession at the turn of the year and stagnated in the second quarter.
Italy, the bloc’s third largest economy, shrunk by 0.4pc between April and June.