Influenced by the ECB's repeated rate hikes, the eurozone economy contracted in the third

 quarter, according to data published today .

---

 

EDITED BY| HUXIANA

 

Economic  section -  CJ journalist

 

Europe - October,31,2023

 

---

The official EU data agency "Eurostat" reported that the economy of the single currency

 area, which includes 20 countries, contracted by 0.1% during the period from July to

 September 2023, after recording growth of only 0.2% in the second quarter.

The figures reflect the difficulties faced by the eurozone, including the cost-of-living crisis

 and concerns about falling demand in the global economy.

Although the eurozone has weathered the shocks caused by the covid pandemic and the

 Ukraine war, concerns are growing about the economic repercussions of the confrontation

 in the Middle East.

The data indicated that the economy of the European Union, which includes 27 countries,

 including member states that do not use the euro currency, performed better, recording

 quarterly growth of 0.1%.

The German economy contracted by 0.1% in the third quarter, while Austria also registered

 a contraction of 0.6%.

France, the second largest economic power in the European Union, grew by only 0.1%, while

 the Italian economy stagnated in the third quarter.

Consumer price inflation in the eurozone slowed to 2.9% in October 2023, the lowest rate

 since July 2021, when the index recorded 2.2%.