Europe’s revival from 18 months of recession caught up in the third quarter as exports slowed and the region’s second-biggest economy turnaround.
Over the preceding quarter the 17-nation eurozone’s initial estimate of GDP demonstrated growth of just 0.1%, when the economy grew by 0.3% subsequent to the contracting for six successive quarters through the depths of the region’s debt crisis.
Analysts were foreseeing growth would deliberate as one-off factors like a seasonal bounce back in German construction dull, but the regional figures were getting frailer compare to some had expected. Germany’s rate of growth more than halved to 0.3%, while the French economy shrank by 0.1%.
The numbers verifies doubts that the eurozone is currently under pressure to generate any actual momentum, as record levels of unemployment, weak investment, tight credit conditions and government austerity are weighing on demand.
In September, industrial production and retail sales both drop, and price rises plunged to 0.7%. That encouraged the European Central Bank to slash interest rates to a fresh record low preceding week in an attempt to stop the region falling into deflation and stagnation.
And ECB President Mario Draghi said the bank was ready to take further measures, including another rate cut, if the move fails to have the desired effect.
Unemployment won’t start falling until 2015 at the earliest, according to recent EU forecasts. The European Commission has trimmed it...