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EconomyGrowth accelerates for euro zone

Growth accelerates for euro zone

Growth within the euro zone economic system accelerated within the second quarter of the 12 months, however the area’s prospects might be hit as Russia continues to cut back gasoline provides.

The 19-member bloc registered a gross home product fee of 0.7% within the second quarter, in keeping with Eurostat, Europe’s statistics workplace, beating expectations of 0.2% progress. The euro zone posted GDP of 0.5% within the first quarter of the 12 months.

The numbers distinction sharply with the adverse 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 12 months, 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 12 months if Russia fully cuts off the area’s gasoline provides.

Officials in Europe have turn into more and more involved about the potential 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 large, lowered 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 fully shut off.

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


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