EU expects recession to hit this year as inflation hangs on
2 years, 1 month ago

EU expects recession to hit this year as inflation hangs on

Associated Press  

FRANKFURT, Germany — The European Union’s executive commission slashed its forecast for economic growth next year, saying the 19 countries that use the euro currency will slide into recession over the winter as peak inflation hangs on for longer than expected and high fuel and heating costs erode consumer purchasing power. The commission says high energy prices, a rising cost of living, higher interest rates and slowing global trade “are expected to tip the EU, the euro area and most member states into recession in the last quarter of the year.” Going forward, the growth forecast for all of 2023 was lowered to 0.3% from 1.4% expected in the previous forecast from July. “After a surprisingly strong first half of the year, the EU economy lost momentum in the third quarter and recent survey data point to a contraction for the winter,” he told reporters in Brussels. “The outlook for next year has weakened significantly.” The worst performer next year is likely to be Germany, Europe’s largest economy and one of the most dependent on Russian natural gas before the war in Ukraine.

Economy Europe Russia Germany Gas This Year Russian European Expected Forecast Expects Recession Inflation Hangs  eu  winter  gas  russian  forecast  economy  expected  energy  hit  european  inflation  hangs  expects  recession  output

History of this topic

Inflation rose to 2.3% in Europe. That won’t stop the central bank from cutting interest rates
3 weeks, 4 days ago

Inflation rose to 2.3% in Europe. That won’t stop the central bank from cutting interest rates

Associated Press  

FRANKFURT, Germany — Inflation in the 20 countries that use the euro currency rose in November — but that likely won’t stop the European Central Bank from cutting interest rates as the prospect of new U.S. tariffs from the incoming Trump administration adds to the gloom over weak growth. The European Union’s harmonized index of consumer prices stood up 2.3% …

Inflation in Europe falls below 2% and opens the way for faster rate cuts
2 months, 3 weeks ago

Inflation in Europe falls below 2% and opens the way for faster rate cuts

The Independent  

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Inflation ticks up in Europe, complicating the European Central Bank’s next move
4 months, 3 weeks ago

Inflation ticks up in Europe, complicating the European Central Bank’s next move

Associated Press  

FRANKFURT, Germany — Inflation in the 20 countries that use the euro ticked up to 2.6% in July, stubbornly above the European Central Bank’s target and complicating the ECB’s next decision on whether to cut interest rates and boost growth as the economy struggles to stage a convincing recovery after a long stretch of stagnation. Services inflation, a figure closely …

Inflation ticks up in Europe, complicating the European Central Bank's next move
4 months, 3 weeks ago

Inflation ticks up in Europe, complicating the European Central Bank's next move

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Inflation in the 20 countries …

Europe's central bank hits pause on rate cuts as inflation takes its sweet time to come down to 2%
5 months ago

Europe's central bank hits pause on rate cuts as inflation takes its sweet time to come down to 2%

The Independent  

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Inflation is down in Europe. But the European Central Bank is in no hurry to make more rate cuts
5 months, 3 weeks ago

Inflation is down in Europe. But the European Central Bank is in no hurry to make more rate cuts

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Inflation in the 20-nation eurozone …

Inflation is down in Europe. But the European Central Bank is in no hurry to make more rate cuts
5 months, 3 weeks ago

Inflation is down in Europe. But the European Central Bank is in no hurry to make more rate cuts

Associated Press  

FRANKFURT, Germany — Inflation in the 20-nation eurozone crept lower to 2.5% in June, but remained stuck above the level favored by the European Central Bank, which is in no hurry to add more rate cuts after a first tentative reduction in its benchmark rate. The ECB’s caution in making sure inflation is under control comes as the U.S. Federal …

Inflation ticked up in Europe in May. That likely won’t stop a central bank rate cut next week
6 months, 3 weeks ago

Inflation ticked up in Europe in May. That likely won’t stop a central bank rate cut next week

Associated Press  

FRANKFURT, Germany — Inflation ticked up to an annual 2.6% in Europe in May, according to official figures on Friday. It’s unlikely to stop the European Central Bank from making a first interest rate cut next week — and moving ahead of the U.S. Federal Reserve in lowering borrowing costs for businesses and consumers. Still, the higher inflation number makes …

Inflation has slid again in Europe. Here’s what that means for interest rates
8 months, 3 weeks ago

Inflation has slid again in Europe. Here’s what that means for interest rates

Associated Press  

FRANKFURT, Germany — The inflation that has squeezed European shoppers fell more than expected in March to 2.4%, as cost spikes in the grocery aisle eased and overall price rises headed down in the two biggest economies, Germany and France. But analysts say the decline from 2.6% in February, though welcome, would likely not be enough to move up the …

Europe’s economy has stalled. But an interest rate cut will likely have to wait for summer
9 months, 2 weeks ago

Europe’s economy has stalled. But an interest rate cut will likely have to wait for summer

Associated Press  

FRANKFURT, Germany — Inflation in Europe is way down from its painful double-digit peak, and the economy has stalled. But the European Central Bank left its key interest rate at a record high Thursday, and its leader suggested a much-anticipated cut to borrowing costs would likely wait until June. The decision comes as central banks around the world, including the …

European inflation eases to 2.6% as energy prices fall and food inflation slows
9 months, 3 weeks ago

European inflation eases to 2.6% as energy prices fall and food inflation slows

Associated Press  

FRANKFURT, Germany — The inflation that has ravaged the European economy eased again in February, falling to 2.6% as high interest rates, moderating oil and gas prices, and sluggish growth held back price increases in stores. The figure, closely watched by the European Central Bank as a measure of underlying inflation pressure in the economy, came in at 3.1%, down …

Inflation in Europe edges down again. But will Houthi attacks on ships spoil the relief?
10 months, 3 weeks ago

Inflation in Europe edges down again. But will Houthi attacks on ships spoil the relief?

Associated Press  

FRANKFURT, Germany — Inflation in Europe edged lower in January to 2.8%, keeping alive speculation about quicker interest rate cuts that would lower borrowing costs for businesses and consumers — and help boost the stagnating economy. “This uncertainty could ultimately prompt central banks to delay rate cuts to give themselves more information on the inflationary impact.” Economic models suggested the …

Europe’s economic pain drags on with zero growth at the end of last year
10 months, 3 weeks ago

Europe’s economic pain drags on with zero growth at the end of last year

Associated Press  

FRANKFURT, Germany — Europe’s economy failed to expand at the end of 2023, dragging out the stagnation for more than a year amid higher energy prices, costlier credit and a downturn in former powerhouse Germany. “The big picture is that eurozone GDP has been flat since the third quarter of 2022 when gas prices surged and the ECB started raising …

Europe’s inflation is up after months of decline. Could it delay interest rate cuts?
11 months, 2 weeks ago

Europe’s inflation is up after months of decline. Could it delay interest rate cuts?

Associated Press  

FRANKFURT, Germany — Inflation plaguing Europe rose to 2.9% in December, rebounding after seven straight monthly declines as food prices rose and support for high energy bills ended in some countries. The rise in price levels fueled debate over how soon interest rate cuts could be expected from the European Central Bank. The faster-than-expected fall in inflation over the last …

Inflation in Europe falls to 2.4% as interest rates pack a punch. But the economy has stalled
1 year ago

Inflation in Europe falls to 2.4% as interest rates pack a punch. But the economy has stalled

Associated Press  

LONDON — Europeans again saw some relief as inflation dropped more than expected to 2.4% in November, the lowest in over two years, as plummeting energy costs have eased a cost-of-living crisis but higher interest rates squeeze the economy’s ability to grow. The new figure is close to the European Central Bank’s inflation target of 2% following a rapid series …

The world economy will slow next year because of inflation, high rates and war, OECD says
1 year ago

The world economy will slow next year because of inflation, high rates and war, OECD says

Associated Press  

WASHINGTON — The global economy, which has proved surprisingly resilient this year, is expected to falter next year under the strain of wars, still-elevated inflation and continued high interest rates. China’s “consumption growth will likely remain subdued due to increased precautionary savings, gloomier prospects for employment creation and heightened uncertainty,″ the OECD said. The world economy has endured one shock …

The world economy will slow next year because of inflation, high rates and war, OECD says
1 year ago

The world economy will slow next year because of inflation, high rates and war, OECD says

LA Times  

A crane lifts a shipping container at an automated container port in Tianjin, China. The global economy, which has proved surprisingly resilient this year, is expected to falter next year under the strain of wars, still-elevated inflation and continued high interest rates. China’s “consumption growth will likely remain subdued due to increased precautionary savings, gloomier prospects for employment creation and …

Economy has lost momentum during a tough year, EU commission says and warns of risk from Mideast
1 year, 1 month ago

Economy has lost momentum during a tough year, EU commission says and warns of risk from Mideast

Associated Press  

FRANKFURT, Germany — The European Union’s executive commission lowered growth its expectations for this year and next, saying the economy “has lost momentum” as inflation discourages consumers and higher interest rates deter borrowing for purchases and investment. it could create spillovers on energy prices.” While growth remains anemic, unemployment remains near record lows and growth should improve as inflation falls …

What’s pushing inflation down? More goods, workers and housing
1 year, 1 month ago

What’s pushing inflation down? More goods, workers and housing

Associated Press  

WASHINGTON — Long past its painful peak, inflation in the United States may be heading steadily back toward its pre-pandemic levels, without the need for further interest rate hikes by the Federal Reserve. Overall inflation didn’t rise from September to October, the first time that consumer prices collectively haven’t budged from one month to another in more than a year. …

International Monetary Fund warns Europe against prematurely declaring victory over inflation
1 year, 1 month ago

International Monetary Fund warns Europe against prematurely declaring victory over inflation

Associated Press  

FRANKFURT, Germany — The European Central Bank and other policymakers across Europe need to keep interest rates at current elevated levels until they’re sure inflation is under control despite sluggish growth, the International Monetary Fund said Wednesday, warning against “premature celebration” as inflation declines from its peak. The Washington-based IMF said that the cost of underestimating inflation’s persistence could be …

Europe’s inflation eased to 2.9% in October thanks to lower fuel prices. But growth has vanished
1 year, 1 month ago

Europe’s inflation eased to 2.9% in October thanks to lower fuel prices. But growth has vanished

Associated Press  

FRANKFURT, Germany — The inflation that has been wearing on European consumers fell sharply to 2.9% in October, its lowest in more than two years as fuel prices fell and rapid interest rate hikes from the European Central Bank took hold. The lower inflation figure follows a rapid series of interest rate hikes by the European Central Bank. The future …

Europe’s central bank halts rate hikes as war in the Middle East casts a shadow over the economy
1 year, 1 month ago

Europe’s central bank halts rate hikes as war in the Middle East casts a shadow over the economy

Associated Press  

FRANKFURT, Germany — The European Central Bank left interest rates unchanged Thursday for the first time in over a year as the Israel-Hamas war spreads even more gloom over already downbeat prospects for Europe’s economy. She reiterated that high rates would help drive back inflation to the bank’s goal of 2% if “maintained for a sufficiently long duration.” She would …

Europe's central bank is set to halt rate hikes as the Mideast war casts a shadow over the economy
1 year, 1 month ago

Europe's central bank is set to halt rate hikes as the Mideast war casts a shadow over the economy

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy The European Central Bank is …

A Recession Is No Longer the Consensus
1 year, 2 months ago

A Recession Is No Longer the Consensus

Live Mint  

Economists are turning optimistic on the U.S. economy. In the latest quarterly survey by The Wall Street Journal, business and academic economists lowered the probability of a recession within the next year, from 54% on average in July to a more optimistic 48%. View Full Image “The probability of recession continues to recede in the U.S. as the banking turmoil …

Euro zone inflation falls to lowest in 2 years as economy slows
1 year, 2 months ago

Euro zone inflation falls to lowest in 2 years as economy slows

The Hindu  

Inflation in the euro zone fell to its lowest level in two years in September, suggesting the European Central Bank's steady diet of interest rate hikes was succeeding in curbing runaway prices albeit at a growing cost for economic growth. Consumer prices in the 20 countries that share the euro rose by 4.3% in September, the slowest pace since October …

Inflation drops to a two-year low in Europe. It offers hope, but higher oil prices loom
1 year, 2 months ago

Inflation drops to a two-year low in Europe. It offers hope, but higher oil prices loom

Associated Press  

FRANKFURT, Germany — Inflation that has plagued Europeans declined sharply in September to the lowest level in two years, strengthening hopes that consumers will get relief from costlier groceries, vacations and haircuts — and that the European Central Bank won’t have to further restrict the economy by raising interest rates from already-record highs. But recently higher oil prices are casting …

German economy sinking in recession in 2023, predicts European Commission
1 year, 3 months ago

German economy sinking in recession in 2023, predicts European Commission

Live Mint  

Bearing the brunt of high inflation driven by factors like Russia-Ukraine crisis, German economy is expected to contract in 2023, predicted European Commission on Monday. The recent cut in forecast has come at a time when Euro's biggest economy is facing high inflation and the spill over effect of Russia-Ukraine war. Euro zone expected to grow slower, says EC The …

Europe’s inflation held steady in August as European Central Bank keeps an open mind on rates
1 year, 3 months ago

Europe’s inflation held steady in August as European Central Bank keeps an open mind on rates

Associated Press  

FRANKFURT, Germany — Annual inflation held steady in Europe in August as food prices raced ahead of falling fuel costs, but there was no clarity about whether the European Central Bank will pause its record series of interest rate hikes. European Central Bank President Christine Lagarde has said that the interest rate decision at the Sept. 14 policy meeting will …

European Central Bank hikes interest rates to combat inflation and leaves door open to more
1 year, 4 months ago

European Central Bank hikes interest rates to combat inflation and leaves door open to more

Associated Press  

FRANKFURT, Germany — The European Central Bank raised interest rates for the ninth straight time Thursday in its yearlong campaign to stamp out painfully high inflation and kept the door open to further hikes despite increasing fears of recession. ECB President Christine Lagarde had all but promised the quarter-percentage point increase and said the bank’s next moves would be determined …

Britain faces years of stagnation because of high interest rates, economists warn
1 year, 5 months ago

Britain faces years of stagnation because of high interest rates, economists warn

The Telegraph  

Britain is facing a prolonged economic slump caused by higher interest rates, economists have warned, with the battle against inflation set to weigh on growth for years to come. In its latest quarterly update, the group said the economy is set to grow by 0.8pc next year, less than half its previous prediction of 1.9pc. Martin Beck, chief economic adviser …

Europe inflation slips to 5.5% — but that won't stop central bank rate hikes
1 year, 5 months ago

Europe inflation slips to 5.5% — but that won't stop central bank rate hikes

The Hindu  

Inflation in Europe slid again in June but fell too slowly to offer much relief to shoppers grumbling over price tags or to stop more interest rate hikes that will raise the cost of borrowing across the economy. While that is a big drop from the peak of 10.6% in October, persistently high prices in the U.S., Europe and the …

Europe inflation slips to 5.5% — but that won’t stop central bank rate hikes
1 year, 5 months ago

Europe inflation slips to 5.5% — but that won’t stop central bank rate hikes

Associated Press  

FRANKFURT, Germany — Inflation in Europe slid again in June but fell too slowly to offer much relief to shoppers grumbling over price tags or to stop more interest rate hikes that will raise the cost of borrowing across the economy. While that is a big drop from the peak of 10.6% in October, persistently high prices in the U.S., …

Europe’s interest rates to stay high as long as needed to defeat inflation, central bank chief says
1 year, 5 months ago

Europe’s interest rates to stay high as long as needed to defeat inflation, central bank chief says

Associated Press  

FRANKFURT, Germany — European Central Bank President Christine Lagarde warned Tuesday that inflation is holding its grip on the economy and underlined that the bank intends to raise rates high enough to “break this persistence.” Lagarde acknowledged that inflation has fallen from all-time highs last year as energy prices plunged and the bank rolled out a rapid series of rate …

Europe’s economy shrank. For households that are hurting, it’s just numbers
1 year, 6 months ago

Europe’s economy shrank. For households that are hurting, it’s just numbers

Associated Press  

LONDON — The European economy contracted slightly at the end of last year and beginning of 2023, revised figures showed Thursday, underlining the impact of the loss of Russian natural gas and high inflation on consumer spending. “Maybe before I used to buy more products I didn’t need, like potato chips for example,” Milo Taneron, a 26-year-old youth social worker, …

Eurozone, 20 countries that use euro currency, slips into recession as GDP falls by 0.1%
1 year, 6 months ago

Eurozone, 20 countries that use euro currency, slips into recession as GDP falls by 0.1%

India TV News  

The European economy contracted slightly at the end of last year and beginning of 2023, revised figures showed Thursday, underlining the impact of the loss of Russian natural gas and high inflation on consumer spending. The last update from the euro area business cycle dating committee, which was released on March 27 and only dealt with data through the end …

European Central Bank chief signals more rate hikes ahead with inflation still ‘strong’
1 year, 6 months ago

European Central Bank chief signals more rate hikes ahead with inflation still ‘strong’

Associated Press  

FRANKFURT, Germany — European Central Bank head Christine Lagarde said Monday that price pressures are “strong” and made clear that the bank will raise interest rates high enough to bring down inflation and keep them there “for as long as necessary.” Lagarde’s remarks reinforced her earlier statements indicating the ECB was not done raising rates even after inflation fell by …

Europe sees inflation drop to 6.1%, but real relief for consumers will take months
1 year, 6 months ago

Europe sees inflation drop to 6.1%, but real relief for consumers will take months

Associated Press  

FRANKFURT, Germany — Europe’s inflation took a positive turn with a significant drop to 6.1%, but prices are still posing a pinch to shoppers who are yet to see real relief in what they pay for food and other necessities. “Otherwise, you sometimes make impulse purchases.” The food bank at Berlin’s St. Wilhelm Roman Catholic Church, meanwhile, has gone from …

Europe's largest economy succumbs, Germany declares recession
1 year, 6 months ago

Europe's largest economy succumbs, Germany declares recession

Firstpost  

Germany slipped into recession after its economy shrank in the first three months of 2023, marking the second quarter of contraction, country’s statistical office said on Thursday. The gross domestic product of Europe’s largest economy declined by 0.3 per cent in the period from January to March. Initial estimates had indicated that the GDP would remain stagnant at zero growth, …

Europe’s economic outlook brightens a little after avoiding recession. But inflation still squeezes
1 year, 7 months ago

Europe’s economic outlook brightens a little after avoiding recession. But inflation still squeezes

Associated Press  

FRANKFURT, Germany — The European Union’s executive body raised its economic growth forecast, saying Europe had dodged a winter recession that was feared amid an energy crisis but warning that stubbornly high inflation is likely to keep hurting the economy by sapping people’s ability to spend. The outlook for the 20 countries using the euro currency improved to growth of …

Europe’s inflation inches up ahead of interest rate decision
1 year, 7 months ago

Europe’s inflation inches up ahead of interest rate decision

Associated Press  

FRANKFURT, Germany — Europe’s painful inflation has inched higher, extending the squeeze on households and keeping pressure on the European Central Bank to unleash what could be another large interest rate increase. Food price inflation eased a little, falling to an annual rate of 13.6% from March’s 15.5%, while energy prices rose a more modest 2.5%. A smaller hike would …

Inflation inches up in Europe ahead of interes rate decision
1 year, 7 months ago

Inflation inches up in Europe ahead of interes rate decision

The Independent  

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Europe’s economy barely grows as inflation pinches consumers
1 year, 7 months ago

Europe’s economy barely grows as inflation pinches consumers

Associated Press  

FRANKFURT, Germany — The European economy scraped out meager growth in the first three months of the year, barely gaining momentum as stubborn inflation raises the price of groceries and erodes people’s willingness to spend paychecks that are failing to keep pace. Friday’s less-than-stellar increase of 0.1% from the previous quarter follows disappointing growth estimates from the U.S., which kept …

German government doubles 2023 growth forecast to 0.4%
1 year, 7 months ago

German government doubles 2023 growth forecast to 0.4%

Associated Press  

BERLIN — The German government on Wednesday doubled its growth forecast this year for Europe’s largest economy after the country made it through the winter without major energy problems. The new government outlook for 2023 is a bit more optimistic than that of a group of four leading German economic research institutes, which earlier this month forecast growth of 0.3%. …

Europe’s inflation eases to 6.9% as energy falls but food up
1 year, 8 months ago

Europe’s inflation eases to 6.9% as energy falls but food up

Associated Press  

LONDON — Inflation in the 20 countries that use the euro currency slowed to the lowest level in a year as energy prices dropped, but food costs were still on the rise, keeping pressure on the European Central Bank to hike interest rates further. “The potential for core inflation to remain stickier than hoped will be the main reason for …

EU foresees economy improving, but inflation still painful
1 year, 10 months ago

EU foresees economy improving, but inflation still painful

Associated Press  

FRANKFURT, Germany — The European Union’s executive branch has raised its economic growth forecast for the year, saying Europe will narrowly avoid a recession and has already passed its inflation peak as natural gas prices fall from astronomical highs. Prices for natural gas — used to heat homes, fuel industry and generate electricity — reached record levels last summer, rising …

Inflation and recession: Can the world defeat both in 2023?
1 year, 10 months ago

Inflation and recession: Can the world defeat both in 2023?

Al Jazeera  

No, says conventional wisdom. The IMF, World Bank and many other experts have pointed to one key factor pushing the economy towards a recession: sharp interest rate hikes by central banks in recent months to tame soaring inflation. Amid the COVID-19 pandemic that crushed the global economy because of lockdowns and supply chain bottlenecks, central banks around the world cut …

European inflation eases for 3rd month but prices still bite
1 year, 10 months ago

European inflation eases for 3rd month but prices still bite

Associated Press  

LONDON — Europe’s inflation rate dipped at the start of the year, giving some relief to consumers but still leaving them facing higher prices that have driven protests and will likely press the European Central Bank into another interest rate hike Thursday. Russia’s war in Ukraine has shaken up food and energy markets, and while commodity prices have fallen from …

Explained: Why Europe is likely to escape recession but the UK is in trouble
1 year, 11 months ago

Explained: Why Europe is likely to escape recession but the UK is in trouble

Firstpost  

The brighter prediction comes as a survey showed Europe’s economy growing for the first time since June and in the backdrop of lower inflation, improved supply chains, and the recent reopening of China’s COVID-scarred economy. EU economic commissioner Paolo Gentiloni was quoted as saying by Reuters earlier in January that although the bloc’s economic situation “is still uncertain … we …

Germany will not fall into recession, insists Scholz
1 year, 11 months ago

Germany will not fall into recession, insists Scholz

The Telegraph  

Germany will avoid a recession this year, Chancellor Olaf Scholz has insisted, despite the energy crisis which has ravaged its economy. Mr Scholz said that new liquefied natural gas terminals on the Baltic and North Sea coasts would help cushion the blow from the energy crisis on Germany’s crucial manufacturing sector. “I’m absolutely convinced that this will not happen – …

Inflation drops sharply in Europe but some prices are still rising faster
1 year, 11 months ago

Inflation drops sharply in Europe but some prices are still rising faster

CNN  

London CNN — Inflation in Europe continued to decline in December as energy prices rose at a slower pace. Prices across the 19 countries that used the euro in 2022 increased at an annual rate of 9.2% in December, the European Union’s statistical office said Friday. While energy inflation fell to 25.7% in December, compared to 34.9% in November, the …

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