Growth accelerates for euro zone

Growth within the euro zone economic system accelerated within the second quarter of the year, however the area’s prospects might be hit as Russia continues to scale back gasoline provides.

The 19-member bloc registered a gross home product rate of 0.7% within the second quarter, in keeping with Eurostat, Europe’s statistics office, beating expectations of 0.2% development. The euro zone posted GDP of 0.5% within the first quarter of the year.

The numbers distinction sharply with the unfavourable readings out of the United States for each the primary and second quarter, because the euro zone continues to learn from the reopening of its economic system after the pandemic.

However, a rising variety of economists expect the euro zone to slip right into a recession subsequent year, with Nomura, for instance, forecasting an annual contraction of 1.2% and Berenberg pointing to a 1% slowdown.

Even the European Commission, the manager arm of the EU, has admitted {that a} recession might be on the playing cards — and as early as this year if Russia utterly cuts off the area’s gasoline provides.

Officials in Europe have grow to be more and more involved about the opportunity of a shutdown of gasoline provides, with European Commission President Ursula von der Leyen saying Russia is “blackmailing” the area. Russia has repeatedly denied it is weaponizing its fossil gas provides.

However, Gazprom, Russia’s majority state-owned power big, decreased gasoline provides to Europe through the Nord Stream 1 pipeline to twenty% of full capability this week. Overall, 12 EU international locations are already affected by partial disruptions in gasoline provides from Russia, and a handful of others have been utterly shut off.

This is a breaking information story and shall be up to date shortly.

Back to top button