Eurozone heads for recession as energy crisis escalates

HSBC Global Research with the note:

Key Points:

Eurozone Q2 GDP growth was revised up from 0.6% to 0.8%, with strength coming from a broad set of countries and 1.3% growth in consumption…
…suggesting that the PMIs, rather than the consumer confidence surveys, have given a better steer on growth…
…but the intensifying energy crisis nevertheless looks set to send the eurozone into recession this winter

Facts

Eurozone GDP growth in Q2 was revised up from 0.6% to 0.8% q-o-q. The initial print, published on 29 July, had come out at 0.7%, then was revised down to 0.6% on 17 August. So now, growth is estimated in excess of that unexpectedly strong initial outturn (originally, consensus had been for 0.2% growth).

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:

$24.99 / month

$249 / year

Cancel at any time through our billing provider, Stripe

Share

About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.