Economic growth in Europe is inhibited

The effects of the ongoing trade and economic conflict between the US and China slow down the growth of the world economy. Despite the fact that the economy of the European Union continues to grow up, the movement almost imperceptible. A few days ago was published the forecast of the EU economy, currently growing at 1.1 per cent, at that time, as the assessment in 2020 was reduced by 0.2%. The forecast was made excluding the UK.

 

European Commissioner for economy and Finance Pierre Moscovici said - “perhaps the most important point of the current forecast, which distinguishes it from the previous one — the lack of recovery. It is a reflection of serious blows to the Eurozone. It will take time to overcome the consequences of these attacks, so we are entering a new phase of moderate growth. Growth is undoubtedly inhibited”.

 

If last year the EU economy rose by 1.9%, this year the condition has only worsened. Proof of this can be Italy, in which this year's growth was only 0.1%. The international monetary Fund gave a more optimistic forecast with the rate of 1.2%. Experts rely on the good performance of Germany.

 

The Director of the European Department of the IMF said “the German economy on paper, not just work, but in some ways even exceeds its own long-term potential. Yes, the weakening significantly, but we continue to see a strong economy and see that the recovery really is.”

 

The views of the European Commission and the IMF about the growth of the German economy differ by 0.1%, the Monetary Fund gives figures of 0.4%. EU analysts believe that the European economy is quite sustainable and stable, for six years there is a growing, cumulative deficit below 1% of GDP, and the unemployment rate is the lowest since the beginning of the century.

 

Besides trade and economic conflict, the decline in growth has affected brakcet. The Eurozone is strongly associated with imports and exports, so growth will hit investment.

 

The situation with brexia still remains unclear. Pan-European analysis takes into account the UK's GDP, however, indicating a “purely technical assessment”. The European Union is still unclear what will happen to trade relations between Britain and the continent. If the issue is not resolved, London will lose the equivalent of 2-3 years of normal economic growth.

15 November, 2019
217
views

Read more:

Goldman Sachs Group Inc. plans to create a European stock trading platform

24 November, 2020

Encouraging results from Moderna vaccine trials have renewed hope in the tourism sector. #INDU

17 November, 2020

Oil prices fall on the eve of progress in the creation of the Covid-19 vaccine

10 November, 2020

US equities rose on Monday

03 November, 2020

Asia will be resistant to the second wave of coronavirus.

28 October, 2020

Oil prices fall for the fourth day

20 October, 2020

World stock indices are showing growth again. GOLD

13 October, 2020

World stock indices are growing

29 September, 2020

News overview for today

22 September, 2020

Hedge Funds Cut Their Optimistic Crude Oil Rates

15 September, 2020

David Trainer's opinion on Tesla shares

08 September, 2020

An urgent notification from the FXspace universe! Split of Apple and Tesla shares. #AAPL

01 September, 2020

Apple is still not as expensive as the competition. #AAPL

25 August, 2020

Gold prices continue to rise amid weakness in the dollar, with a $ 2,000 mark expected. GOLD

18 August, 2020

The us stock market again shows growth. #SPX

28 July, 2020

The company's technology sector in the United States show an increase. #MSFT

21 July, 2020

The shares of companies of technological sector of the USA show an increase. #INDU

14 July, 2020

Arrange a call