GDP in the Eurozone drops in the third quarter of 2023 and is forecast to fall further
EU buries bad news as Eurozone economy contracts
This does not appear in the EU’s news section. Funny, that…..
On Tuesday (31 Oct 2023) the EU acknowledged that GDP in the Eurozone — which has 20 of the EU27 member countries and includes almost all the larger EU economies — fell by 0.1% in the last quarter (Jul-Sept). This is based on preliminary figures and will be confirmed or revised in two weeks’ time, as usual. All predictions are that the Eurozone economy will fall further and faster over the next six months.
What is not usual, however, is that not one word appeared about this in the news section of the website for the EU’s statistics agency, Eurostat. Customarily this would be the subject of a report in the daily news but instead, it was buried in the ‘Euroindicators’ section, which only some economists read.
Instead, we were treated to reports such as “Significant growth of EU candle trade in 2022” and “Over 6 million tonnes of pasta produced in 2022”. I kid you not.
The EU’s news department increasingly resembles the Soviet-era Pravda newspaper, which used to report on matters such as “Tractor production up again”.
I thought readers should be made aware of the economic woes across the Channel, even if the EU Commission does not seem keen on you knowing this.
GDP in the Eurozone contracts in the third quarter of 2023
- Q1: 0.0%
- Q2: 0.1%
- Q3 : -0.1%
[Source: Eurostat, 31 Oct 2023.]
Who were the worst performers?
Brexiteers will like this
The worst figures for GDP were recorded in
- Ireland (-1.8%)
- Austria (-0.6%)
- Czechia (-0.3%)
- Portugal (-0.2%)
- Germany (-0.1%)
All the figures are seasonally adjusted and also use ‘chained volume measures’ (CVM) which take out the effect of inflation.
The Eurozone’s growth in the last 15 years has been negligible, particularly in comparison with other economies around the world, most notably China, the US, and the Far East.
One of the keys to driving the growth of exports is exporting to growing markets. This is precisely why the UK’s accession to the trans-Pacific markets represented in CPTPP is so interesting. The UK is the first country outside of the original founding members to have been invited to become a member. This is not a privilege which has been afforded to the EU.
I guess they dont like losers
The chart below — from the EU Commission — shows the Eurozone’s meagre performance over the past 15 years
Not even the most avid Remainer-Rejoiner can blame this on Brexit
The Eurozone’s economic troubles are certainly not good news — for the 20 EZ countries — and for the UK which sells into this market, albeit less and less as the years go by.
The key point here is that none of this can be blamed on Brexit. Had this news been about the UK, I am sure that readers can imagine the accusations that this was “due to Brexit”. However, this is about the Eurozone.
What is even more worrying for the EU Commission is that economists at most major financial institutions are forecasting larger drops in GDP in the final quarter.
There’s no hope for the extremist Remainer-Rejoiners
I long ago gave up any hope that Remainer-Rejoiners would actually take the trouble to read my reports, which are all based on official data. Instead, they continue to hurl foul-mouthed abuse on social media. If they actually read our summary reports they might learn something.
Sources: EU Commission
