{"id":1454091,"date":"2024-01-30T14:30:00","date_gmt":"2024-01-30T19:30:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1454091"},"modified":"2024-01-30T14:30:00","modified_gmt":"2024-01-30T19:30:00","slug":"eu-miraculously-avoids-recession-in-q4-as-spains-gain-offset-germanys-drain","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/eu-miraculously-avoids-recession-in-q4-as-spains-gain-offset-germanys-drain\/1454091\/","title":{"rendered":"EU Miraculously Avoids Recession In Q4 As Spain’s Gain Offset Germany’s Drain"},"content":{"rendered":"

EU Miraculously Avoids Recession In Q4 As Spain’s Gain Offset Germany’s Drain<\/span><\/p>\n

\n

After Q3’s 0.1% decline, the euro-zone was expected to see a similar economic growth (contraction) of -0.1% in Q4, crystallizing the ‘technical’ recession, giving The ECB the ‘all-clear’ for rate-cuts.<\/p>\n

But<\/strong> thanks to surprising gains in Spain (and an improvement in Italy) – which offset Germany’s ugliness and France’s stagnation – the Eurozone economy was unchanged in Q4, technically – and miraculously – avoiding recession.<\/strong><\/p>\n

<\/a><\/p>\n

Spain’s gains,however, had a double-edged sword as Spain\u2019s statistics office also said higher electricity prices, reflecting a phasing out of tax breaks, caused inflation to unexpectedly pick up from 3.3 per cent in December in January to 3.5 per cent.<\/strong> Economists had expected a slowdown to 3.1 per cent.<\/p>\n

Germany was joined by Ireland and Lithuania in economic contraction in Q4…<\/p>\n

<\/a><\/p>\n

That left the bloc trailing the US,<\/strong> which last week established itself as the world\u2019s fastest-growing advanced economy in 2023 with annual growth of 3.1%.<\/p>\n

China\u2019s government recently estimated its economy grew 5.2%last year.<\/p>\n

\u201cEurope is still recovering from a lingering energy shock and has not experienced the same degree of fiscal stimulus as the more resilient US economy in recent years,\u201d <\/strong>said Nicola Mai, a sovereign credit analyst at investor Pimco.<\/em><\/p>\n

Finally, this surprise non-recessionary print prompted traders to modestly reduce the odds of a rate-cut in April…<\/p>\n

<\/a><\/p>\n

…but, as is clear, expectations are still very high for Lagarde and her pals to pull the trigger – even she keeps telling the market that they’re not ready (until the summer). Forward-looking service indicators signal \u201ca pickup in further growth ahead,\u201d <\/strong>she said.<\/p>\n

But, governments are withdrawing many of the energy and food subsidies<\/strong> they introduced to cushion the impact of the recent surge in the cost of living that followed Russia\u2019s full-scale invasion of Ukraine, which could weigh on any rebound.<\/strong><\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nTue, 01\/30\/2024 – 09:30<\/span><\/p>\n

\u200bRead More<\/a>\u00a0<\/p>\n

\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

EU Miraculously Avoids Recession In Q4 As Spain’s Gain Offset Germany’s Drain After Q3’s 0.1% decline, the euro-zone was expected to see a similar economic…<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1454091","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1454091","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1454091"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1454091\/revisions"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1454091"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1454091"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1454091"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}