According to Eurostat data, EU economic activity increased by 0.2% in the third half of the year
The impact of the war in Ukraine continues to take its toll on the European economy. The Gross Domestic Product (GDP) of the European Union (EU) and the Eurozone grew by just 0.2% in the third half of the year, signaling a slowdown in economic activity. As Europe puts on the brakes, inflation – driven by energy and food prices – is not giving up, rising to 10.7% in October, according to data from the European Statistical Office (Eurostat).
At the last meeting of the Governing Council of the European Central Bank (ECB), the institution anticipated a slowdown in growth in the eurozone for 2022 and 2023. And the data seems to prove him right. Of course, the data varies per Member State. Sweden was the country that grew the most in the third semester, at 0.7%, followed by Italy (0.5%), Portugal and Lithuania (both at 0.4%). Spain, for its part, adjusted to the 0.2% recorded in the block average; while Latvia (-1.7%), Austria and Belgium (0.1%) recorded negative growth in their economies.
From the Ministry of Economy, they appreciated the data published by Eurostat, which “demonstrates the resilience of the Spanish and European economies”, which “have continued to grow” despite the cessation of gas supply by Russia. These same sources emphasize that the Spanish economy was the second fastest growing in the bloc, with GDP growing two points year on year.
Meanwhile, inflation remains unstoppable, putting further pressure on European economic activity. The price of energy remains the main culprit in this escalation, accounting for 41.9% of price increases, followed by food (13.1%), non-energy industrial products (6%) and services (4.4%) . In Spain, the Ministry of Economy emphasizes that inflation was 3.4% below the European average; ie 7.3%, which “confirms the effectiveness of the Spanish government’s measures to control inflation”.
The ECB expects prices to remain high “for a long period of time” and controlling them has become its main mission. Since July, the European entity has changed its monetary policy, with three rate hikes aiming to stabilize prices at 2% over the medium term. The president, Christine Lagarde, assured that “there will be more hikes” despite warning signs of a possible recession in the eurozone. However, the agency is convinced that lowering prices is “the most appropriate way to restore stability and prosperity” in the eurozone.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
