When Somebody Cuts off a Chicken's Head (Germany), the Bird (Europe) Is Still Flapping the Wings and Flying Around For Some Time: Eurozone Economy Grows Slightly Amid German Weakness

 

Who destroyed the German industry? The leader of Germany, Mr Scholz, doing his Zeitenwende dance and joining sanctions against inexpensive Russian energy. This is a horrible Ende for his idiotic Zeitenwende.

"Eurozone growth maintained its pace in the second quarter, shrugging off unexpected contraction in powerhouse member Germany, but fears of a slowdown persist.

Nevertheless, still sluggish growth adds to the likelihood that policymakers will move to boost the economy in the months ahead.

Gross domestic product increased by 0.3% between April and June, the same rate as in the year's first quarter when the currency union emerged from the stagnation it suffered throughout last year.

Most of the 20-member union's larger economies booked better growth than expected, including France and, with a major 0.8% leap, Spain. The Iberian kingdom is riding a wave of tourist euros, with income skyrocketing by more than 20% in the first five months of the year on the back of soaring international demand for vacations to the country's beaches and cities.

In stark contrast, the eurozone's most important economy, Germany, shrank slightly from the previous quarter, confounding economists' forecasts for moderate expansion. Hopes for an industrial-led rebound at the start of 2024 have faded as demand remains weak and geopolitical issues pressure the key manufacturing sector.

Though the cycle of interest-rate increases and energy-price spikes is behind us, there is still no sign that the German economy is recovering, said Joerg Kraemer, chief economist at Germany's Commerzbank.

Inflation is now trending lower, and the European Central Bank, which had lifted interest rates to their highest level in more than 20 years, last month moved to lower its key rate for the first time since 2019.

A reduction in borrowing costs would likely boost domestic demand and business investment. But the eurozone is also vulnerable to wider global currents. Limp demand among Chinese consumers for European goods is hitting corporate profits and limiting production." [1]

1. World News: Eurozone Economy Grows Slightly Amid German Weakness. Kirby, Joshua.  Wall Street Journal, Eastern edition; New York, N.Y.. 31 July 2024: A.8.