Europe has been showing signs in there economy that a recession may not happen. Europe has had a long battle like the US in dealing with inflation, interest rates climbing, and price increases. Among those Europe has been having to deal with the war in Ukraine and the effect it has on the rest of the countries in Europe. This week the statistics agency reported the the economy grew 0.1% in the final quarter of the year. This comes at a huge sign of relief for European governments as it seems that inflation has either hit its peak or has passed it and the possibility of a recession is slowly decreasing. There are still many issues to fix throughout the countries, Britain economy went down 0.6% due to cost of living climbing. Europes economy is still on the fence and will continue to be as long as the war in Ukraine continues.
Europe as a whole has been improving there economy faster than the US has been this year and the fourth quarter of 2022. With overall economy growth slowly going up Europe does not have to think about rationing gas and preparing for black outs due to the lack of oil they are receiving. The war has effected all of Europe. With the end of December and January closing in it can be safely said that Europe has navigated through the toughest situations with their economy.
https://www.nytimes.com/2023/01/31/business/europe-inflation-economy.html
5 comments:
The major reason for slow economic growth in Europe after the Covid-19 pandemic is the Russia-Ukraine war and its impact on European countries. The war along with the global economic downfall is making it difficult for these countries to see growth. A large number of immigrants going to Europe to seek asylum is also resulting in a shortage of resources, increase unemployment, increase inflation, and low growth. A further tightening of policy would be necessary or Europe can face high inflation.
This is a really interesting post. The economic growth over the past year has been a wavering issue, with the impact of the war in Ukraine, gas prices, cost of living influxes, etc. Although the continent of Europe as a whole seems to be heading off signs of a recession, I wonder how this looks on an individual country scale. Although some countries might be doing well economically, I wonder if some who are having greater unemployment, displacement, and recession worries are in a very different place than other countries in the EU. If so, what about their economies is different, and what can we do to turn the market around? I think this is a really important issue, and I think that looking into how the EU can intervene to turn the EU as a whole around would be interesting to look at as well.
Europe's economy is slowly getting back on its feet. We are already hitting the 1-year mark since Russia's invasion of Ukraine and we have already seen various sanctions, restrictions, and separation from the overall economic activities European countries have put on Russia. One of the main decisions European countries made was to stop buying oil and natural gas from Russia. They also cut off the imported Goods and Services from Russia by almost 50%. Those restrictions have led the European economy to increase prices and supply change problems. They are also constantly funding Ukraine for humanitarian, financial, and military purposes which also leads to increased government spending. European countries, that are closer to Ukraine (Poland, Georgia, Moldova,etc) have seen vast amount of refugees coming to their country asking for asylee.
The situation in Europe is interesting. With the ongoing energy crisis due to the war in Ukraine, Europe has continued stronger than expected. Before the winter started, there were expectations of a difficult winter and a lot of people potentially being without heat for a majority of the winter. Many countries were able to adjust to this energy crisis and have been dealing with it way better than expected. Since the United States and Europe are so intertwined financially/economically, it will be interesting to see what the future holds for both economies.
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