Eurozone Economy Trails Behind UK's Robust Growth in Q1

[Social Media]

 

The eurozone economy is facing a sluggish recovery, growing at just half the pace of the UK's robust rebound from recession in the first quarter of the year. While the euro area has emerged from recession, its growth remains modest compared to the UK's "gangbusters" expansion during the same period.

 

According to data from Eurostat, GDP across the eurozone grew by a mere 0.3 percent in the first quarter, lagging significantly behind the UK's impressive 0.6 percent growth. Experts attribute the UK's strong performance to various factors, including effective policy measures and a resilient economic landscape.

 

 

However, analysts like Andrew Kenningham at Capital Economics express caution regarding the eurozone's recovery, noting that growth is likely to be subdued. The modest increase in GDP was partly driven by a temporary rebound in construction activity, which may not be sustainable in the long term.

 

Despite the slight uptick in employment, productivity stagnated as the average worker's output remained unchanged. Among the major economies in the eurozone, both France and Germany recorded sluggish growth rates of 0.2 percent each. Germany, in particular, struggled to reverse the slump experienced in the previous quarter, facing challenges such as the loss of cheap gas from Russia and a slowdown in exports to China.

 

Carsten Brzeski, an economist at ING, highlights concerns about Germany's employment landscape, noting a rise in part-time work and a decline in overall productivity. Despite a strong labor market, there are worries about declining competitiveness and prosperity in Germany.

 

Italy's economy saw modest growth of 0.3 percent, while Spain continued to benefit from its tourism-driven boom, with GDP rising by 0.7 percent for the second consecutive quarter. Spain's impressive output growth outpaced the eurozone average, indicating resilience in the face of economic challenges.

 

Looking ahead, analysts like Claus Vistesen at Pantheon Macroeconomics point to easing inflation as a potential driver of growth in the eurozone. Lower inflation rates could alleviate financial strain on households and businesses, leading to increased consumer spending. Additionally, a reduction in interest rates by the European Central Bank could further support economic recovery, particularly in terms of investment.

 

While challenges persist, there is optimism that the eurozone economy will gradually improve, supported by favorable economic conditions and policy interventions aimed at stimulating growth. However, sustained efforts will be needed to address underlying issues and foster long-term prosperity across the region.

 

Credit: Daily Telegraph 2024-05-17

 

Get our Daily Newsletter - Click HERE to subscribe

[herfiehandbag]

But but but Brexit...

[JonnyF]

Well well well.

 

Project Fear, cliff edge, 8% drop in GDP (merely on a vote to leave). Little insignificant Britain can't possibly survive outside the mighty EU. 

 

If only someone had called those lies out at the time. Oh, wait a minute... 😃

[Chomper Higgot]

Cold comfort for those within the166,000 increase in UK unemployment employment.

 

https://www.wired-gov.net/wg/news.nsf/articles/TUC+UK+jobs+market+is+rapidly+deteriorating+as+unemployment+surges+15052024142500?open#:~:text=Unemployment up by 166%2C000 on,a rapidly deteriorating jobs market.

 

 

[JonnyF]

5 minutes ago, Chomper Higgot said:

Cold comfort for those within the166,000 increase in UK unemployment employment.

 

https://www.wired-gov.net/wg/news.nsf/articles/TUC+UK+jobs+market+is+rapidly+deteriorating+as+unemployment+surges+15052024142500?open#:~:text=Unemployment up by 166%2C000 on,a rapidly deteriorating jobs market.

 

 

 

I doubt the Germans are too thrilled either.

 

https://www.reuters.com/markets/europe/german-unemployment-seen-rising-highest-level-almost-decade-2024-04-26/#:~:text=Other leading German economic institutes,report for the German government.

 

 

Weren't you telling us that Brexit was going to lead to massive Labour shortages? Not unemployment. Shall we file that in the same wheelie bin as your prediction for a May election, or a different one?

[Chomper Higgot]

3 minutes ago, JonnyF said:

 

I doubt the Germans are too thrilled either.

 

https://www.reuters.com/markets/europe/german-unemployment-seen-rising-highest-level-almost-decade-2024-04-26/#:~:text=Other leading German economic institutes,report for the German government.

 

 

Weren't you telling us that Brexit was going to lead to massive Labour shortages? Not unemployment. Shall we file that in the same wheelie bin as your prediction for a May election, or a different one?

Brexit has lead to labour shortages.

 

Not all workers can do all jobs.

 

 

https://commonslibrary.parliament.uk/research-briefings/cdp-2023-0001/

 

 

 

Edited May 17 by Chomper Higgot

[JonnyF]

1 minute ago, Chomper Higgot said:

Brexit has lead to labour shortages.

 

Not all workers can do all jobs.

 

 

https://commonslibrary.parliament.uk/research-briefings/cdp-2023-0001/

 

 

Did it also lead to Germany's labour shortages?

 

https://www.reuters.com/markets/europe/germanys-shortage-workers-is-biggest-risk-growth-minister-says-2024-02-21/

 

I would argue a bigger factor in labour shortage is importing a load of unskilled immigrants while skilled professionals like me grow sick of the place and go and work for a multinational in Thailand where some semblance of sanity remains. 

[Chomper Higgot]

Just now, JonnyF said:

 

Did it also lead to Germany's labour shortages?

 

https://www.reuters.com/markets/europe/germanys-shortage-workers-is-biggest-risk-growth-minister-says-2024-02-21/

 

I would argue a bigger factor in labour shortage is importing a load of unskilled immigrants while skilled professionals like me grow sick of the place and go and work for a multinational in Thailand where some semblance of sanity remains. 

Why would importing unskilled labour cause a self professed professional to leave?

 

It doesn’t make sense.

[JonnyF]

Just now, Chomper Higgot said:

Why would importing unskilled labour cause a self professed professional to leave?

 

It doesn’t make sense.

 

Doesn't make sense to me either.

 

Who said they left because of unskilled labour?

[placeholder]

Not surprising that this is how the Telegraph characterized the UK's GDP growth. There's just one little problem with it: the UK grew from a negative base so half of that 0.6%growth is just making up for lost ground. If you factor that in the EU and the UK are tied for the first quarter. And, of course, if you compare performances over the last year, the EU wins.

https://www.statista.com/statistics/1341661/quarterly-gdp-growth-in-selected-countries/

Also to keep in mind is that Germany has basically bet on exports to fuel its economic growth. That's the same path being touted by Brexit supporters as a panacea. That once freed from the EU, the UK's exports would soar. 

 

 

[stevenl]

1 hour ago, JonnyF said:

Well well well.

 

Project Fear, cliff edge, 8% drop in GDP (merely on a vote to leave). Little insignificant Britain can't possibly survive outside the mighty EU. 

 

If only someone had called those lies out at the time. Oh, wait a minute... 😃

Just imagine how much better it could have been for the UK had they stayed 

Good for the UK they seem to be recovering.

[stevenl]

1 hour ago, JonnyF said:

 

Doesn't make sense to me either.

 

Who said they left because of unskilled labour?

True, they left because of immigration. That issue seems solved, lol.

[newbee2022]

9 hours ago, Social Media said:

 

The eurozone economy is facing a sluggish recovery, growing at just half the pace of the UK's robust rebound from recession in the first quarter of the year. While the euro area has emerged from recession, its growth remains modest compared to the UK's "gangbusters" expansion during the same period.

 

According to data from Eurostat, GDP across the eurozone grew by a mere 0.3 percent in the first quarter, lagging significantly behind the UK's impressive 0.6 percent growth. Experts attribute the UK's strong performance to various factors, including effective policy measures and a resilient economic landscape.

 

 

However, analysts like Andrew Kenningham at Capital Economics express caution regarding the eurozone's recovery, noting that growth is likely to be subdued. The modest increase in GDP was partly driven by a temporary rebound in construction activity, which may not be sustainable in the long term.

 

Despite the slight uptick in employment, productivity stagnated as the average worker's output remained unchanged. Among the major economies in the eurozone, both France and Germany recorded sluggish growth rates of 0.2 percent each. Germany, in particular, struggled to reverse the slump experienced in the previous quarter, facing challenges such as the loss of cheap gas from Russia and a slowdown in exports to China.

 

Carsten Brzeski, an economist at ING, highlights concerns about Germany's employment landscape, noting a rise in part-time work and a decline in overall productivity. Despite a strong labor market, there are worries about declining competitiveness and prosperity in Germany.

 

Italy's economy saw modest growth of 0.3 percent, while Spain continued to benefit from its tourism-driven boom, with GDP rising by 0.7 percent for the second consecutive quarter. Spain's impressive output growth outpaced the eurozone average, indicating resilience in the face of economic challenges.

 

Looking ahead, analysts like Claus Vistesen at Pantheon Macroeconomics point to easing inflation as a potential driver of growth in the eurozone. Lower inflation rates could alleviate financial strain on households and businesses, leading to increased consumer spending. Additionally, a reduction in interest rates by the European Central Bank could further support economic recovery, particularly in terms of investment.

 

While challenges persist, there is optimism that the eurozone economy will gradually improve, supported by favorable economic conditions and policy interventions aimed at stimulating growth. However, sustained efforts will be needed to address underlying issues and foster long-term prosperity across the region.

 

Credit: Daily Telegraph 2024-05-17

 

Get our Daily Newsletter - Click HERE to subscribe

0.6 %  strong growth... wow, amazing. Really exceptionel. (check the time from Brexit to now. A bit different 😂)🙏

[metisdead]

A post with a trolling meme contravening our Community Standards has been removed.

[candide]

+0.6% compared to the previous quarter which wascat -0.3%...

 

Over one year, UK is at +0.2% and the Eurozone at +0.4%.

https://commonslibrary.parliament.uk/research-briefings/sn02784/

[nauseus]

7 hours ago, Chomper Higgot said:

Cold comfort for those within the166,000 increase in UK unemployment employment.

 

https://www.wired-gov.net/wg/news.nsf/articles/TUC+UK+jobs+market+is+rapidly+deteriorating+as+unemployment+surges+15052024142500?open#:~:text=Unemployment up by 166%2C000 on,a rapidly deteriorating jobs market.

 

 

 

Quick! Better talk about something else.

[nauseus]

37 minutes ago, candide said:

+0.6% compared to the previous quarter which wascat -0.3%...

 

Over one year, UK is at +0.2% and the Eurozone at +0.4%.

https://commonslibrary.parliament.uk/research-briefings/sn02784/

 

Cherries picked, then attractively displayed atop beds of apples  and oranges. 

[eisfeld]

Completely misleading title and article. The UK had a much more massive decline the quarter before and are now on a rebound. The EU declined less so doesn't need a rebound of that size. Remember Growth is always relative. If you look at longer timeframes then the UK is massively lagging behind the EU. That's not from some EU source but the UK parliament. I hope the UK can step up its game. *looking awkwardly at Germany*.

 

 

Source https://commonslibrary.parliament.uk/research-briefings/sn02784/

Edited May 17 by eisfeld

[Red Forever]

In the interest of balance it's best to note that the Telegraph isn't known for impartiality.

[RayC]

38 minutes ago, nauseus said:

 

Cherries picked, then attractively displayed atop beds of apples  and oranges. 

 

Cherry orchard located. Plenty of pickings. Other fruits also available.

 

https://ukandeu.ac.uk/reports/

[candide]

35 minutes ago, nauseus said:

 

Cherries picked, then attractively displayed atop beds of apples  and oranges. 

Sure! That's why economists find it relevant to compare between G7 countries and also with the Eurozone (including economists working for the British Parliament)! 😀

[nauseus]

43 minutes ago, candide said:

Sure! That's why economists find it relevant to compare between G7 countries and also with the Eurozone (including economists working for the British Parliament)! 😀

 

Great. Except the topic is: Eurozone Economy Trails Behind UK's Robust Growth in Q1

[candide]

38 minutes ago, nauseus said:

 

Great. Except the topic is: Eurozone Economy Trails Behind UK's Robust Growth in Q1

Great comment! Except for the fact that the Eurozone was also included in all the tables and charts I linked. They show that cherry picking Q1 2024 to compare the UK with the Eurozone is meaningless, as UK trails behind the Euzone on a one year perspective (0.2% vs 0.4% for the Eurozone), as well as on a middle term perspective (1.7% compared to pre-Covid level vs 3.4% for the Eurozone).

[nauseus]

57 minutes ago, candide said:

Great comment! Except for the fact that the Eurozone was also included in all the tables and charts I linked. They show that cherry picking Q1 2024 to compare the UK with the Eurozone is meaningless, as UK trails behind the Euzone on a one year perspective (0.2% vs 0.4% for the Eurozone), as well as on a middle term perspective (1.7% compared to pre-Covid level vs 3.4% for the Eurozone).

 

The topic line concerns Q1, not what you want it to.

[Chomper Higgot]

3 hours ago, nauseus said:

 

Quick! Better talk about something else.

The real economy where 166,000 more people are out of work.

[transam]

4 minutes ago, Chomper Higgot said:

The real economy where 166,000 more people are out of work.

I think you are cornered, at the mo it seems the UK has turned a corner, which has upset you and all your UK putdowns...........

 

Oh, you have picked up on folk out of work, there will always be folk out of work, but did you include all those rubber boat folk you support in those out of work numbers.............🤣...........🤣...............🤣..............?

[eisfeld]

20 minutes ago, nauseus said:

 

The topic line concerns Q1, not what you want it to.

 

Who is cherry picking here? The people who focus on a single quarter or the people who take into consideration the broader context and longer timeframes?

 

 

Edited May 17 by eisfeld

[candide]

42 minutes ago, nauseus said:

 

The topic line concerns Q1, not what you want it to.

I can understand you don't like it, but my comment is quite relevant as the general topic is the comparative assessment of the UK and Eurozone economies.

 A single quarter is not a relevant indicator to assess an economy. The Q4 2023 at -0.3% was not relevant either.

[Chomper Higgot]

58 minutes ago, transam said:

I think you are cornered, at the mo it seems the UK has turned a corner, which has upset you and all your UK putdowns...........

 

Oh, you have picked up on folk out of work, there will always be folk out of work, but did you include all those rubber boat folk you support in those out of work numbers.............🤣...........🤣...............🤣..............?

With 166,000 more unemployed it does indeed seem the Uk has turned a corner, though perhaps not the one you imagine.

 

’Rubber boat folk I support’?

 

 

 

[transam]

11 hours ago, Chomper Higgot said:

With 166,000 more unemployed it does indeed seem the Uk has turned a corner, though perhaps not the one you imagine.

 

’Rubber boat folk I support’?

 

 

 

Well at least you found one thing to do a UK put-down on, which I am sure you will keep in your notebook as a reserve, as the UK moves ahead........😂

 

Are your rubber boat people working, or are you taking care of them with your tax money........🤭