Eurozone Growth Slumps Amid Energy Crisis and High Inflation, Risk of Recession Looms
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Euro area GDP fell 0.1% in Q3, highlighting risk of recession later this year. Economy has struggled to gain momentum since Russia's invasion of Ukraine.
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Inflation continued to ease, falling below 3% for first time in over 2 years. Decline mainly due to lower energy and food prices.
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Weakening activity in manufacturing and services sectors points to further slowdown in demand.
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Big economies like Germany, France, Spain and Italy saw very modest or no growth in Q3.
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While sharp recession not seen, continued uncertainty and higher rates will weigh on euro zone in coming months. Economy faces period of stagnation.