Zero Economic Growth In Europe

According to the European Bureau of statistics, the GDP value of the euro zone in the two quarter is flat, which means that the euro zone zero growth in the two quarter. The publication of such data has increased the market's concern about the economic recovery in Europe.

"This not only makes the European Central Bank's sluggish forecast of economic growth 1% unrealistic," said Lena Komileva, chief economist of G Plus Economics, "and it is hard to see what will sustain economic recovery growth."

Germany, known as the "European locomotive", began to flameout. Germany's GDP grew by 0.8% in the first quarter, and the GDP fell by 0.2% in the second quarter, the first decline since 2012. Foreign trade and investment, especially the decline in the construction industry, have dragged down the overall economic growth.

　　 Euro The second largest economic engine of the region is France, following the overall pace of the euro area, with GDP increasing by zero, which is the two consecutive quarter of zero growth in France. French finance minister Sapan said that the 2014 annual growth rate of GDP is expected to be cut to half by 0.5%. In the two quarter of the third largest economy, Italy's GDP contracted by 0.2%, significantly lower than market expectations.

Other Member States also have eye-catching performances. Spain's GDP growth rate increased to 0.6%; Holland's economy dropped to 0.4% in the first quarter, and it rebounded to 0.5% in the two quarter, while Portugal rebounded from 0.6% to 0.6%. But the economic growth of these countries can only offset the economic decline of the euro zone, and the whole eurozone economy is still in a weak state.

In addition, according to the published data, the average price of Greece fell by 0.8% in July, while prices in Portugal and Spain fell by 0.7% and 0.4% respectively, while inflation in Italy was zero. The overall inflation rate in the euro area is only 0.4%, the lowest since 2009, far below the ECB's 2% warning line.

Accordingly, Europe It may face more severe deflation pressure. "Japan is the first modern economy to fall into a downward spiral of consumer prices, namely deflation. There are signs that some European countries seem to be on the brink of danger."

The escalation of the economic sanctions war between Europe and Russia will also have a further impact on the European economy. In August 7th, Russia announced a one year ban on importing food from the European Union and the United States. The move is seen as a counterattack to the sanctions imposed by the United States and the European Union on Russia's energy, military and financial sectors.

Reuters commented: "in all countries Structural Under the slow pace of reform, the pace of economic recovery in Europe is very slow at present, and the damage to the economic health of the EU after its sanctions against Russia is gradually showing that the European economy can be described as "internal and external troubles". Before the Russian sanctions were announced, the European Commission predicted that the EU would reduce its income by 40 billion euros and 50 billion euros respectively in the coming two years, due to the EU sanctions imposed on Russia, accounting for 0.3% and 0.4% of GDP respectively.

"Today's data show that the economic recovery is still too weak to resist external shocks, such as Russia's economic sanctions." "This also means that GDP growth is likely to remain in the cessation mode," said Peter Vanden Houte, chief economist of Holland International Group (ING).

The European Central Bank also released the forecast results of professional forecasting agencies for eurozone economic data. The results show that professional institutions have comprehensively lowered their expectations for the euro area GDP and consumer price reconciliation index (HICP) in 2014.