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Gross domestic product in the euro zone edged up slightly in the fourth quarter, beating expectations despite being hit by inflation, energy prices and economic headwinds from the war in Ukraine.Photo courtesy of symbiot/Shutterstock
January 31 (United Press International) — The European Union announced on Tuesday that the euro zone remained profitable in the fourth quarter, with a slight but unexpected increase in gross domestic product.
GDP rose 0.1% — down from 0.3% in the third quarter — even as nearly a third of the economies of the 19 countries that use the euro contracted, including Germany. preliminary figures Data from Eurostat, the European Union’s statistical office, show.
But it was up 1.9% compared to the fourth quarter of 2021. These figures do not include Croatia, which only joined the region on January 1.
Growth across the EU, which includes 27 countries, was flat at 0%, down from 0.3% in the third quarter. However, the growth rate in the fourth quarter of 2021 will be 1.8%.
Eurostat growth figures and The latest IMF forecasts The global economy showed a five-fold drop in economic growth in the euro zone to 0.7% this year from an estimated 3.5% in 2022.
The IMF has blamed inflation and the war in Ukraine for its forecasted global slowdown this year, which is almost a full percentage point below the historical (2000-19) average of 3.8%.
The IMF said the balance of risks remained tilted to the downside, but the global economy may be at a turning point as growth bottomed out in recent months and headwinds, including inflation, eased.
“Economic growth showed surprising resilience in the third quarter of last year, with a strong labor market, robust household consumption and business investment, and Europe’s adaptation to the energy crisis better than expected,” said Pierre Olivier, IMF Research Director. chas.
“Inflation has also improved, with headline indicators now falling in most countries – even though core inflation, which excludes volatile energy and food prices, has not yet peaked in many countries.”
Inflation figures from Eurostat earlier this month showed euro zone inflation fell below double digits for the first time in three months and hit the weakest level since August, giving Europeans a little bit of a slack on their economies at the end of 2022. Take a breath.
Eurostat says December’s Inflation Rate Compared with 2021, it was 9.2%, down from 10.1% in November and 10.6% in October. This is the lowest inflation rate since August, when it was 9.1%.
Eurozone has Facing increasing economic pressure Since Russia invaded Ukraine 11 months ago. Many member states have participated in economic sanctions against Russia, and the Kremlin has retaliated by shutting down gas pipelines and limiting energy supplies to Europe as a whole.
These moves have created energy shortages that have sent energy prices soaring.
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