Germany, Frankfurt (AP) -The European economy was stagnant after Germany, the original growth engine, has finished two consecutive years of production.
The EU Statistics Bureau's Euro Stat increased the number of domestic gross production in the last quarter of 2024 in the last quarter of 2024 and increased zero.
With the possibility of trade confusion under the new management of US President Donald Trump, the economy has been delayed in the third quarter of the 0.4 % growth. Despite the decline of inflation from 10.6 % in October 2022, consumers stayed cautiously after being stabbed by inflation.
Germany is working in multiple headwinds, such as low -cost energy loss from Russia, bureaucrats in Berlin, and political paralysis. The economy contracted 0.2 % in the fourth quarter.
The largest German economy in Europe also signed 0.2 % in 2024. This is the second consecutive year of the decrease in production.
This year's outlook is not so good. The government has reduced the forecast for 2025 on Wednesday from 1.1 % to 0.3 %.
The major European economy of Germany and France is anxious about what companies and consumers are holding on from the government's expenditure, regulation, and tax perspectives, and what companies and consumers are holding. I feel. German turmoil could be resolved after the national election on February 23, after the collapse of the Social Democratic Party Olaf Shorz collapsed.
France may take some time to appear from paralysis. Because the parliament is deeply divided and cannot be a new election until July. Political forces are in conflict on how to deal with a large -scale budget deficit.
The business outlook has become unstable through the Trump election. Trump election can damage European export -oriented economy. Delaying the cancellation of the amount of electric vehicle intake and the German EV purchase subsidy will impair the demand for parts suppliers.
The reduction in European Central Bank is expected to reduce major interest rates in the second half of Thursday. This is a step that helps to promote growth.
ECB faces the juggling method because ECB helps grow by making lower prices more affordable, but can worsen inflation. This was 2.4 % in December, as it has risen in recent months and the energy price has risen.
Consumers' optimism, such as the economic emotional index edited by the EU Executive Committee, indicates that consumers are more surprised than prices. Perhaps it is unknown whether it is expecting a higher price in the future due to a tariff threat from the new Trump administration or recent price rise.
“However, regardless of the reason, households expecting inflation to rise have added headwinds to the prospects of private consumption when European households are already very carefully acting on spending decisions. It will be in the report, “Oxford Economics Economist.
