Core

Flash

<h2 id="quick-take">Quick Take</h2>
<p>Recent data analysis paints a precarious picture for the European economy. Q3 2023 GDP figures illustrate a contraction of -0.1%, defying the forecast for a flat rate. This downturn marks a crucial moment for the European economy, as another subsequent negative quarter could officially wedge Europe into a recessionary period.</p>
<p>This economic backdrop is further nuanced by the inflation figures. The headline inflation rate for Europe was lower than the projected 3.1%, registering at 2.9% year over year. Despite this dip, core inflation remained steady at 4.2% year over year, matching consensus expectations. Despite declining headline inflation, the core inflation rate remained at 4.2% yearly. However, it’s worth noting that this figure is double the typical inflation target set by central banks.</p>
<p>These data, taken together, suggest a series of financial challenges facing the European economy. GDP contraction coupled with a dip in headline inflation, yet steady core inflation, could potentially signal an economic imbalance that needs addressing.</p>
<p>The impending question is whether Europe can stave off another negative quarter and effectively skirt a recession. The interplay between GDP and inflation figures will undoubtedly be a key watchpoint in the ensuing quarters.</p>
<table border="1">
 <thead>
  <tr>
   <th>EU GDP and Inflation data</th>
   <th>Actual</th>
   <th>Previous</th>
   <th>Consensus</th>
  </tr>
 </thead>
 <tbody>
  <tr>
   <td>GDP Growth Rate QoQ Flash Q3</td>
   <td>-0.1%</td>
   <td>0.1%</td>
   <td>0%</td>
  </tr>
  <tr>
   <td>GDP Growth Rate YoY Flash Q3</td>
   <td>0.1%</td>
   <td>0.5%</td>
   <td>0.2%</td>
  </tr>
  <tr>
   <td>Inflation Rate YoY Flash, October</td>
   <td>2.9%</td>
   <td>4.3%</td>
   <td>3.1%</td>
  </tr>
  <tr>
   <td>Core Inflation Rate YoY Flash, October</td>
   <td>4.2%</td>
   <td>4.5%</td>
   <td>4.2%</td>
  </tr>
  <tr>
   <td>Inflation Rate MoM Flash, October</td>
   <td>0.1%</td>
   <td>0.3%</td>
   <td>–</td>
  </tr>
  <tr>
   <td>CPI Flash, October</td>
   <td>124.55</td>
   <td>124.4</td>
   <td>–</td>
  </tr>
 </tbody>
</table>
<p style="text-align: center;"><em>EU GDP and inflation data: (Source: Trading Economics)</em></p>
<p>The post <a rel="noopener noreferrer nofollow" href="https://cryptoslate.com/insights/european-economy-on-the-brink-of-recession-as-q3-gdp-contracts-by-0-1/">European economy on the brink of recession as Q3 GDP contracts by 0.1%</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://cryptoslate.com">CryptoSlate</a>.</p>

European economy on the brink of recession as Q3 GDP contracts by 0.1%

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