Eurozone economy declines sharply

The hard-hit industrial sector was the cause of the Eurozone's economic growth decline in June. According to official data released, the Eurozone has entered a technical recession since the beginning of 2023.

Eurozone growth has slowed but inflation remains well above the European Central Bank's (ECB) 2% target, putting pressure on the bank to continue raising interest rates despite the sluggish economy, according to AFP.

Eurozone economic growth slowed in June 2023. Photo: Reuters

Data from the HCOB Flash Eurozone Purchasing Managers' Index (PMI) survey published by S&P Global fell from 52.8 in May 2023 to 50.3 in June 2023.

S&P Global said the figures showed renewed weakness in the Eurozone economy after a slight recovery in growth seen in the spring, and also recorded the first decline in new business orders since January 2023, leading to a slowdown in job growth and pessimism about future output.

France recorded the lowest economic growth in June 2023, with the sharpest decline in the manufacturing and services sectors since February 2021. Meanwhile, Germany's growth almost stalled, in complete contrast to the previous three-month period up to May 2023.

June saw a further escalation of growth concerns, particularly the impact of higher interest rates and the risk of a domestic recession, S&P Global said.

Source: https://hanoimoi.vn/kinh-te-eurozone-sut-giam-manh-623590.html