EUROPE
Euro Area
Economic growth remained moderate in the third quarter, with GDP expanding a meagre 0.2% over the previous quarter, mirroring the result recorded in Q2. Industrial production figures from September corroborate the dismal economic activity reading, as industrial output contracted 1.9%, marking the largest drop in more than two years.
Eastern Europe
The region is starting to feel the headwinds of a slowdown in global economic activity and of the looming debt crisis in the Eurozone. In Russia, higher volatility in oil prices adds uncertainty to the growth outlook given the economy’s dependence on oil exports. Meanwhile, the Turkish lira depreciates further as the flight to quality in financial markets adds to concerns about the country’s widening current account deficit. Finally, subdued Q2 GDP readings in Czech Republic, Hungary and Romania and the marked deceleration in industrial output experienced by Poland in June follow in line with early hints of slowing economic activity in Western Europe.
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