The Eurozone could slip back into recession this year as new data signalled a sharper slowdown in economic growth than first thought.
In its final estimate of GDP growth in the 20-member common currency bloc, Eurostat said output expanded by 0.1 per cent in the three months to June, driven largely by a slump in German manufacturing. The reading is a downgrade from the initial estimate of a 0.3 per cent rise and is worse than analysts’ forecast.
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.”
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