Eurozone GDP projected to rise by 0.7% in Q2 2022 over Q1

GDP growth in the first quarter was 0.5 per cent in the euro area and 0.6 per cent in the EU compared with the previous quarter.

Energy inflation in the euro area is expected to be 39.7 per cent in July, down from 42 per cent in June, the World Economic Forum mentioned on its website.

The war in Ukraine is having a particular impact on European economies, due to their proximity and reliance on natural gas from Russia, which is raising the risk of recession.

The International Monetary Fund (IMF) projects global economic growth to slow to 3.2 per cent this year from 6.1 per cent in 2021.

Fears of a global recession are growing, as supply chain disruptions cause soaring inflation and a cost-of-living crisis.

“The risk of recession is particularly prominent in 2023, when in several economies growth is expected to bottom out, household savings accumulated during the pandemic will have declined, and even small shocks could cause economies to stall,” the IMF cautioned.

Fibre2Fashion News Desk (DS)