Bucharest, November 16, 2023 – # rbj – In the third quarter of 2023, seasonally adjusted GDP decreased by 0.1% in the euro area and remained stable in the EU, compared with the previous quarter, according to a flash estimate published by Eurostat, the sTATISTICS
office of the European Union. In the second quarter of 2023, GDP had grown by 0.2% in the euro area and had remained stable in the EU.
According to the flash estimates published today by Eurostat, no less than 7 states (out of the total of 23 that announced the results for the 3rd quarter) are experiencing a technical recession, that is, 2 consecutive quarters of negative or 0.0% GDP growth.
This year, ten member states are expected to see a decline in their national wealth. Germany’s GDP is expected to fall by 0.3%, impacting its neighbors with interconnected economies: Austria (-0.5%), Luxembourg (-0.6%), the Czech Republic (-0, 4%).
Among the other countries in recession: the three Baltic States (the biggest decrease being in the case of Estonia, at -2.6%), Sweden (-0.5%), Hungary (-0.7%) and Ireland (- 0.9%), whose GDP is of course used to yo-yoing according to the accounting movements of the multinationals based there.
The exception is Romania, all forecasts are for a GDP increase of about 2.2%.
The most worrying situation is reported on the German market, where the car industry is facing numerous difficulties. Other sectors are no longer growing either, as the markets in Asia and Russia are no longer attracted to expensive and uncompetitive German products. But the most difficult state of the German economy is determined by the energy imputations. The abrupt interruption of imports from Russia leaves serious marks on the German economy. This year, the lack of gas in Russia has a boomerang effect. The period of flourishing of the German economy due to cheap gas and oil resources from Russia, during Angela Merkel’s governments, has ended. Russia can no longer return to supporting the German economy. Especially since, in Berlin, the traffic light government is divided and incoherent.
Holland, Denmark, Italy are in great difficulty.
Only France seems to maintain some momentum in attracting foreign investments and revitalizing the industry.
In the East of the community block, the economy is starting to limp more and more, the result of the fatigue in the West.
The European Economic Commissioner, Paolo Gentiloni, has a plastic explanation: “In a world that has changed, the EU cannot be the only herbivore in a world of carnivores”. Fearless reference to the lack of competitiveness and dissonant discourses between various EU political factions: conservatives, socialists, greens, progressives, etc.
The truth is that Europe, led by the EU, has remained a marginal player in the world economy and politics. Stifled by the lack of coherence in the new world, dominated by the US and China, Europe will not be able to find an obvious status unless internal political ambitions converge towards a common objective, a solidarity for the revival of the nations that make up the European Union.
