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.
⚠️EURO AREA ECONOMIC STAGNATION IS TRULY STAGGERING⚠️
The Eurozone retail sales (NOT INFLATION ADJUSTED) have declined by ~3% over the last 3 years and have materially diverged from its pre-pandemic trend.
This is a key metric measuring consumer demand.
The EU economy is weak. pic.twitter.com/o0TCJ9kZVJ
— Global Markets Investor (@GlobalMktObserv) October 10, 2024
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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