Eurozone Economic Outlook
May 31, 2022
Momentum remained subdued in the first quarter. Industrial production was weak in the period, weighed down by soaring commodity prices and supply constraints. The services sector suffered from surging inflation and souring consumer sentiment. More positively, the unemployment rate continued to fall throughout the quarter amid easing Covid-19 restrictions, pointing to healthy labor market dynamics. Moving to Q2, robust PMI readings in April-May suggest solid activity, but pessimistic consumer sentiment and elevated inflation could be hitting household spending. Meanwhile, in late May, the European Commission extended the suspension of budgetary rules for member states until 2023. However, it also warned several countries against public accounts imbalances, and recommended fiscal prudence given heightened economic uncertainty. Lastly, a new taskforce was created to speed up energy diversification away from Russia.Eurozone Economic Growth
Growth will cool this year, restrained by high commodity prices, protracted supply chain disruptions and downbeat confidence amid the war in Ukraine. That said, a healthy labor market, the disbursement of EU funds and the reopening of economies should sustain activity. Tighter financial conditions, elevated public debts and the duration of the war pose risks. The economy is seen expanding 2.6% in 2022, which is down 0.2 percentage points from last month’s forecast. In 2023, GDP is seen increasing 2.1%.Eurozone Economy Data
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Eurozone Facts
| Value | Change | Date | |
|---|---|---|---|
| Exchange Rate | 1.12 | 0.65 % | Dec 31 |
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Eurozone Economic News
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Eurozone: Unemployment rate ticks up in March as coronavirus blow starts to bite
April 30, 2020
Labor market conditions in the common currency bloc deteriorated in March, the first month when COVID-19 containment measures began to be extensively introduced, according to data released by Eurostat.
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Eurozone: Inflation slumps to over three-year low in April on plunging energy prices
April 30, 2020
Harmonized inflation fell to 0.4% in April from March’s 0.7%, marking the lowest reading since September 2016, according to a flash estimate released by Eurostat on 30 April.
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Eurozone: Coronavirus crisis strikes unprecedented blow to Eurozone economy in Q1
April 30, 2020
The Eurozone economy contracted sharply in the first quarter of this year, after marginally expanding in Q4 2019.
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Eurozone: ECB cuts rates on long-term liquidity operations and introduces new anti-pandemic auctions
April 30, 2020
On 30 April, the European Central Bank (ECB) decided to step up its efforts to combat the economic and financial shockwaves currently shaking the Euro area.
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Eurozone: Economic sentiment collapses at sharpest pace on record in April
April 29, 2020
Sentiment in the Eurozone tumbled at the sharpest pace in the survey’s history in April due to measures adopted to contain the spread of coronavirus, plunging to 67.0 points from March’s 94.2 points.
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