Eurozone on Brink of Recession as Economy Shrinks Amid High Rates, Inflation
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Eurozone economy shrank 0.1% in Q3 2023, putting it on the brink of recession after failing to grow in 3 of the past 4 quarters.
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Higher interest rates from ECB, inflation reducing consumer spending power, and weakness of exports due to slowing global economy contributed to eurozone's flatlining.
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Germany, France, and Italy saw weak or no growth, while Spain grew 0.3%. Ireland had the biggest contraction at -1.8%.
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Eurozone inflation dropped faster than expected to 2.9% in October 2023, but core inflation remained high at 4.2%.
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Poor economic outlook suggests ECB likely to keep interest rates on hold despite inflation drop, in order to avoid recession.