According to a study, the euro area economy has surprisingly accelerated the decline. According to economist Cyrus de la Rubia, both the manufacturing and services sectors are in a downward trend. In addition, key interest rates have risen sharply.
“Things continue to go downhill in the eurozone,” said chief economist Cyrus de la Rubia of the Hamburg Commercial Bank (HCOB), which is sponsoring the survey of thousands of companies. Overall, there are many signs of another weak quarter. “So we would not be surprised if we see a mild recession in the eurozone in the second half of the year,” De la Rubia said. Economists speak of a technical recession when the economy shrinks for two quarters in a row.
Is there a breach of interest?
The overall economic situation in the eurozone is also burdened by the sharp increase in key interest rates. The European Central Bank (ECB) wants to tackle inflation. The monetary authorities are now seeing their first successes in the fight against inflation (see video above).
Experts therefore assume that the ECB Council will decide to pause interest rates during its meeting on Thursday in Athens. The ECB has already raised the policy rate ten times in a row since the summer of 2022. At a deposit rate of four percent, interest rates could peak for the time being.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
