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Inflation vs growth: Eurozone struggles amid global tensions

06 Dec '23
6 min read
Pic: Adobe Stock
Pic: Adobe Stock

Insights

  • The eurozone's vulnerability to global tensions, especially due to its significant imports of commodities like gas and oil, has resulted in inflation and a cost-of-living crisis.
  • While the ECB controlled inflation, it led to a trade-off between inflation and growth, affecting growth prospects.
  • Recession risks loom, impacting manufacturing and employment.

These factors have significantly hampered the bloc&#**;s growth prospects. Growth projections have been capped at a modest * to *.* per cent until ****. Growth disparities are evident, with some regions showing moderate growth while others teeter on the brink of recession. As the current inflation stands at *.* per cent, the ECB is sceptical about the bad days gone by. As we live in a globalised world, trade is paramount, even in the face of a shallow recession.

Recession on, trade off

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