Germany Avoids Recession, but Weak Growth Weighs on Europe
Published On Oct 30, 2024, 7:50 AM
Europe's economy has shown minimal growth, expanding by just 0.4% in the latest quarter, primarily due to the struggles of Germany, the economic powerhouse of the continent. This growth is significantly weaker compared to the U.S., which is experiencing a 3% growth rate. The European economy is facing challenges, such as loss of competitiveness and high energy prices stemming from the ongoing effects of the war in Ukraine, particularly impacting Germany's manufacturing sector. The International Monetary Fund has warned that Europe's recovery is not meeting its full potential.
Stock Forecasts
EWU
Negative
With Europe's economic growth stalling and Germany's manufacturing sector struggling due to high energy costs and loss of competitiveness, investors may want to consider hedging against European stocks or focusing on non-European markets. The outlook for European economies remains weak, indicating potential downturns for relevant stocks in the region.
Related News
UK Budget: What to Know Before Labour’s Announcement
Oct 28, 2024, 12:01 AM
The new Labour Party government said it had inherited a challenging financial position and warned of tax increases and spending cuts when it reveals its budget this week.
Britain Braces for ‘Painful’ Budget Meant to Recharge the Economy
Oct 28, 2024, 12:01 AM
The new Labour Party government said it had inherited a challenging financial position and warned of tax increases and spending cuts when it reveals its budget this week.
Budget 2024: Reeves considers income tax threshold freeze
Oct 19, 2024, 12:50 AM
Government sources insist the move would not constitute a breach of Labour's manifesto tax pledge.