Yerevan, 20.October.2018,
--
:
--
,

Euro zone economy grinds to halt even before Russia sanctions bite

The euro zone economy ground to a halt in the second quarter of the year, drained of vigour by contraction in Germany and stagnancy in France. Zero growth reported by statistics agency Eurostat on Thursday was alarm bell for politicians and policymakers in the 18-nation economy, which is already bracing for the impact tit-for-tat sanctions against Russia over Ukraine. Germany, Europe's largest economy contracted by 0.2 percent on the quarter, undercutting Bundesbank forecasts that it would stagnate, with foreign trade and investment notable weak spots, the German Statistics Office said on Thursday. With so much uncertainty surrounding Russia and Ukraine, a quick rebound is unlikely. "Today’s figures show that the upturn remains too weak to withstand external shocks, meaning that GDP growth will probably remain stuck in stop-and-go mode," said Peter Vanden Houte, chief euro zone economist at ING. France fared little better, flatlining for the second successive quarter. That forced the French government to confront reality, saying it would miss its budget deficit target again this year and cutting its 2014 forecast for 1 percent growth in half. Italy, the euro zone's third largest economy, slid back into recession for the third time since 2008 in the second quarter, shrinking by 0.2 percent and pressuring Prime Minister Matteo Renzi to complete promised structural reforms. Rome and Paris have led a drive to focus EU policy more on jobs and growth rather than cutting debt. Germany and others have shown they will only tolerate that debate up to a point. Bundesbank chief Jens Weidmann said on Wednesday that euro zone monetary policy should not aim to weaken the euro and individual member states should take steps to boost growth, rebuffing French calls for Germany and the European Central Bank to do more. A Reuters poll of economists conducted over the past week gave only a 15 percent chance that the ECB will start printing money this year, given its recent gambit to prime banks with more cheap money does not even kick in until September. The poll put the chances of the ECB embarking on a quantitative easing programme at one-in-three in 2015.
loading...
Four men took own lives after webcam blackmail Katy Perry gets charity award for her work with children from Hillary Clinton Philip Morris could stop making conventional cigarettes Trump eyes ex-Goldman banker Steve Mnuchin for Treasury CIA chief warns Trump: Scrapping Iran deal 'height of folly' Thousands 'miss out on stroke treatment' Samsung Electronics considers splitting firm in two South Korea's President Park 'willing to resign' Brazil Chapecoense football team in Colombia plane crash Bird flu: Netherlands culls 190,000 ducks Trump dismisses Wisconsin recount drive as 'scam' Fidel Castro death: Cubans mourn ex-leader Women in science pledge to combat hate Black Friday and Cyber Monday: Five tips for spotting a bargain Lung cancer cells spread like unanchored tents, study says Abducted California woman Sherri Papini found after three weeks Brazil president Michel Temer accused of corruption Predatory bacteria can wipe out superbugs, says study Catherine Zeta-Jones takes aim at paparazzi with 'better' bikini photos Colombia signs new peace deal with Farc Israel fires: Tens of thousands flee as fires hit Haifa Shia pilgrims among more than 80 killed in IS attack in Iraq Climate changing 'too fast' for species
Today For week For Month
website by Sargssyan