Which means that there's not a great deal of room for the European Central Bank to ease monetary policy in order to boost growth.
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None; Aggregates; Same region; Similar values; Highest values; Lowest values; Share Details. Employment growth in the euro area and EU The number of employed persons decreased by 0.2% in both the euro area and the EU in the first quarter of 2020, compared with the previous quarter. The growth economy has been France.The first estimate of French fourth-quarter GDP growth was a shocker; GDP unexpectedly fell by 0.1% q/q after a 0.3% increase in the third quarter. The reading represents the weakest expansion since Q4 2013 and undershot market expectations of a GDP growth (annual %) - European Union. This came in well below expectations of a 0.2% q/q increase.Now, it's possible to go on, as many do, and say this is all destocking and don't worry about it. The European Central Bank has a problem, GDP growth is slowing to the point of recession, but inflation is rising.This doesn't leave much, if any, room for monetary policy to influence that growth rate.This is over and above the problems with the variability within the eurozone.As we all know, the eurozone simply isn't an optimal currency area.
GDP growth (annual %) - Euro area. Shrug, that's just what the problem is.As I've been saying for some time now, there's a strong suggestion of a But here's the problem. Website popup. Published Thu, Apr 30 2020 5:07 AM EDT Updated Thu, Apr 30 2020 6:44 AM EDT. That's not a good environment for us as investors, but that's what I think is going to be happening.Preliminary numbers showed that euro zone GDP grew by 0.1% q/q in the fourth quarter, slowing from an upwardly revised 0.3% rise in the third and below expectations of 0.2%. Sure, there will always be special situations, growth companies and so on.
And this is indeed a problem.At which point, my prediction would be that the eurozone economy is just going to stagnate. Monetary policy, given the political constraints, is near played out. No, not stagflation - that implies significant inflation without growth - but just an economy that meanders along and gets pretty much nowhere. According to a preliminary estimate released by Eurostat, GDP increased a seasonally-adjusted 0.1% in Q4 from the previous quarter, following Q3’s 0.3% increase. Growth rates To the previous quarter (Q/Q-1) To the previous year (Q/Q-4) Estimates Previous Current Previous Current GDP euro area 0.1 0.1 1.0 0.9 All figures presented in this release may be revised with Eurostat’s regular estimates of GDP and main aggregates (including employment) scheduled for 10 March 2020 and 20 April 2020.
The Eurozone economy contracted sharply in the first quarter of this year, after marginally expanding in Q4 2019. The first estimate of French fourth-quarter GDP growth was a shocker; GDP unexpectedly fell by 0.1% q/q after a 0.3% increase in the third quarter. The Eurozone economy shrank by 12.1 percent in the three months to June 2020, entering a steep recession, a preliminary estimate showed. Go elsewhere.Tech, banks, gold & precious metals, natural resourcesI/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.I wrote this article myself, and it expresses my own opinions.
Label. Growth from a year earlier eased to 1% from 1.2%.That's pretty pathetic, and in any other major global economy, that would have the central bank easing monetary policy. It is, instead, "up to 2%," which is very much more restrictive. Yet, we're here on the cusp of a proper recession. The cure for this is a loosening of monetary policy. The second quarter eurozone GDP figure should probably go on that list as well; it would be great if it were never to be beaten. GDP growth rates over the previous quarter (bars) and previous year (lines) % change, based on seasonally adjusted data. License: CC BY-4.0 Line Bar Map. The reading represents the weakest expansion since Q4 2013 and undershot market expectations of a 0.2% increase.