Eurozone Growth Stalls as High Inflation Weighs on Economy
-
Eurozone economy contracted 0.1% in Q3, reversing mild growth in Q2. Extends nearly a year of weak growth.
-
Inflation in eurozone fell to 2.9% in October, a two-year low, signaling impact of higher interest rates.
-
Contrasts with strong US growth despite Fed interest rate hikes to curb inflation.
-
No sharp eurozone recession forecast, but continued uncertainty and higher rates will weigh on activity.
-
ECB has hiked rates alongside Fed to combat high inflation from Ukraine war, but paused this month as inflation shows signs of easing.