Weak Economic Growth in Europe! UK May Face Negative Growth!

Recently, the European Commission released its Autumn Economic Forecast for 2023, once again lowering economic growth expectations for the European Union (EU) and the Eurozone in the coming two years.

Additionally, according to data recently published by the UK National Statistics Office, the quarter-on-quarter initial estimate for the UK's GDP in the third quarter was 0%, indicating that the UK's GDP has stagnated in the third quarter.

EU Lowers Economic Expectations

According to the forecast in the Autumn Economic Outlook report, the growth rates of the Gross Domestic Product (GDP) for both the EU and the Eurozone are projected to be 0.6% in 2023, which is 0.2 percentage points lower than the forecast in the Summer Economic Outlook report.

It is anticipated that in 2024, the EU's economic growth will be 1.3%, and the Eurozone's growth will be 1.2%, both 0.1 percentage points lower than previously expected.

The UK's economic growth has been a long-standing issue. Since the "Brexit," UK-EU trade has declined, leading to instability in external markets. Simultaneously, there has been insufficient exploration in emerging markets, resulting in a lack of new driving forces.

The Bank of England predicts a 50% likelihood of a recession in the UK by 2024.

Meanwhile, due to high inflation and a continuous decline in the standard of living, various industries in the UK have been experiencing frequent strikes. In recent months, railway workers in the UK have held multiple strikes.

UK Economy Stalls

According to data recently released by the UK National Statistics Office, the year-on-year inflation rate in October decreased from 6.7% in September to 4.6%, reaching a two-year low.

Recently, the UK government announced a £4.5 billion fund for the manufacturing industry, increasing investment in eight sectors in the UK. The UK Treasury stated that this funding would be provided over five years starting from 2025, offering long-term certainty for industry investment.

Among these, over £2 billion (approximately $2.49 billion USD) will be allocated to the automotive industry, and £975 million (approximately $1.22 billion USD) will be allocated to aerospace, supporting the manufacturing, supply chain, and development of zero-emission vehicles, as well as investments in energy-efficient and zero-carbon aircraft equipment.

Disclaimer: This message has been reprinted from other media, and its publication is for the purpose of conveying more information, and does not imply agreement with its views or confirmation of its description. The content of the article is for reference only and does not constitute any suggestions.