This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.theguardian.com/business/live/2020/jan/31/french-gdp-shrinks-eurozone-gdp-economy-italy-business-live
The article has changed 15 times. There is an RSS feed of changes available.
Version 8 | Version 9 |
---|---|
Eurozone growth slows sharply as French and Italian economies shrink – business live | Eurozone growth slows sharply as French and Italian economies shrink – business live |
(30 minutes later) | |
Rolling coverage of the latest economic and financial news, as France’s economy contracts by 0.1% in the last quarter | Rolling coverage of the latest economic and financial news, as France’s economy contracts by 0.1% in the last quarter |
Capital Economics are also gloomy -- predicting that 2020 will be a weaker year than hoped. | |
Christoph Weil, economist at Commerzbank, reckons the European Central Bank will be very concerned by the eurozone slowdown - which could spur it into more stimulus measures. | Christoph Weil, economist at Commerzbank, reckons the European Central Bank will be very concerned by the eurozone slowdown - which could spur it into more stimulus measures. |
Weil says (via the FT): | Weil says (via the FT): |
The eurozone growth slump is partly due to Donald Trump trade wars, says Barret Kupelian, senior economist at PwC. | The eurozone growth slump is partly due to Donald Trump trade wars, says Barret Kupelian, senior economist at PwC. |
We don’t yet know how the UK fared in the last quarter; the most recent figures show 0.1% growth in September-November. | We don’t yet know how the UK fared in the last quarter; the most recent figures show 0.1% growth in September-November. |
But Kupelian points out that the eurozone has actually outperformed the UK since the Brexit vote -- as Britain “missed out on the synchronised upswing in economic activity in 2016/17.” | But Kupelian points out that the eurozone has actually outperformed the UK since the Brexit vote -- as Britain “missed out on the synchronised upswing in economic activity in 2016/17.” |
European stock markets are sliding again today, hit by the unexpectedly weak growth figures and the ongoing coronavirus crisis. | European stock markets are sliding again today, hit by the unexpectedly weak growth figures and the ongoing coronavirus crisis. |
Every index is down, led by Italy (down 1.4%) and Spain (-1%). | Every index is down, led by Italy (down 1.4%) and Spain (-1%). |
In London, the FTSE 100 is also suffering, down 60 points or 0.8% to a six-week low. | In London, the FTSE 100 is also suffering, down 60 points or 0.8% to a six-week low. |
The news that Britain now has two coronavirus cases is also worrying traders (and the rest of the public too, I suspect). | The news that Britain now has two coronavirus cases is also worrying traders (and the rest of the public too, I suspect). |
Josie Dent, Senior Economist at the CEBR, points out that France and Italy are now half-way into recession following their contractions last quarter. | Josie Dent, Senior Economist at the CEBR, points out that France and Italy are now half-way into recession following their contractions last quarter. |
Here’s Reuters’ take on today’s growth reports: | Here’s Reuters’ take on today’s growth reports: |
In another blow to households, inflation across the eurozone has picked up. | In another blow to households, inflation across the eurozone has picked up. |
Consumer prices rose by 1.4% year-on-year in December, up from 1.3%, due to rising food, alcohol and tobacco prices. | Consumer prices rose by 1.4% year-on-year in December, up from 1.3%, due to rising food, alcohol and tobacco prices. |
Some snap reaction to the eurozone slowdown: | Some snap reaction to the eurozone slowdown: |
Newsflash: Growth across the eurozone, and the European Union, slowed sharply in the last quarter. | Newsflash: Growth across the eurozone, and the European Union, slowed sharply in the last quarter. |
Eurozone and EU GDP both only rose by 0.1% in October-December, down from 0.3% in July-September, dragged down by Italy (-0.3%) and France (-0.1%). | Eurozone and EU GDP both only rose by 0.1% in October-December, down from 0.3% in July-September, dragged down by Italy (-0.3%) and France (-0.1%). |
Economists had expected the eurozone to grow by 0.2% in the last quarter, in the face of weak global growth and trade tensions. | Economists had expected the eurozone to grow by 0.2% in the last quarter, in the face of weak global growth and trade tensions. |
On an annual basis, the eurozone economy is only 1% larger than a year ago -- a weak performance. | On an annual basis, the eurozone economy is only 1% larger than a year ago -- a weak performance. |
We don’t yet know how Germany, the region’s biggest economy, performed - that data comes out next month, as does UK GDP. | We don’t yet know how Germany, the region’s biggest economy, performed - that data comes out next month, as does UK GDP. |
Eurostat, which compiles the survey, adds: | Eurostat, which compiles the survey, adds: |