OREANDA-NEWS By the end of 2023, the eurozone economy will shrink by another 0.1 percent after a similar drop in the third quarter. Thus, local GDP will face a second consecutive quarterly decline and the first recession after the coronavirus pandemic, Bloomberg reports, citing the results of a survey of analysts.
The gradual recovery of the eurozone economy is expected to occur earlier than 2024. Such dynamics will be influenced by a number of factors, including continuing problems with production in Germany, considered the largest economy in the region, experts said. According to their forecast, Germany's GDP will shrink by 0.2 percent in the fourth quarter after falling by 0.1 percent in July-September.
According to experts, other leading eurozone countries will also face a recession. Thus, analysts predicted zero economic growth rates for Italy by the end of 2023, and a 0.1 percent drop in GDP for France. At the same time, experts believe that inflation in the eurozone will not come close to the European Central Bank's target of 2 percent per annum before September 2024.
Earlier, Bloomberg, citing a report by analysts at the Federal Statistical Office of Germany (Destatis), reported that the German economy was facing a serious problem. According to the results of the third quarter, the volume of production in the manufacturing industry decreased by 3.8 percent year-on-year.
At the same time, the crisis intensified in October. Thus, according to the results of the second month of autumn, the volume of production of machinery and equipment fell by 13.5 percent compared to the September value, and the total demand for production orders in Germany decreased by 3.7 percent during this time.
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