In Europe, GDP fell and inflation slowed

The European economy contracted in quarterly terms for the first time since 2020 amid weak external and domestic demand and tightening monetary policy. Eurozone GDP decreased by 0.1% in July-September this year compared to the second quarter, according to preliminary data from Eurostat. Negative quarterly dynamics may continue in the fourth quarter, which will mean a recession, experts say. Previously, the dynamics were near zero: 0.1% in April–June and 0% in January–March. In annual terms, the eurozone economy maintained weak growth at 0.1% in the first quarter after 0.5% in the second.

The largest declines were demonstrated by Ireland (by 1.8%), Austria (by 0.6%) and the Czech Republic (by 0.3%), with the Austrian economy contracting for the second quarter in a row (in the second quarter it fell by 0.8% ). Germany, Europe’s largest economy, contracted 0.1% in July-September.