The EU economy is weak

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The Eurozone is grappling with considerable economic challenges, evidenced by a notable decline in retail sales. Over the past three years, retail sales—unadjusted for inflation—have plummeted by approximately 3%, starkly diverging from pre-pandemic trends. This decline serves as a critical indicator of weakened consumer demand, raising alarms about the region’s economic health.

Compounding these issues, the broader economic landscape reveals stagnation, with the Eurozone’s real GDP growth averaging a meager 0.1% per quarter over the last two years. This sluggish growth can be attributed to a confluence of factors, including high inflation rates, rising interest rates, and ongoing geopolitical tensions that have disrupted trade and consumer confidence. As a result, the economic outlook for the Eurozone appears increasingly precarious, with little sign of recovery on the horizon.

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Sources:

www.ecb.europa.eu/press/key/date/2024/html/ecb.sp241002_2~4fbb6ea450.en.html

www.ecb.europa.eu/press/economic-bulletin/focus/2024/html/ecb.ebbox202404_01~3ceb83e0e4.en.html


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