Europe gets more bad news as recession fears deepen

[xizhimen]

Europe gets more bad news as recession fears deepen​

By Anna Cooban, CNN Business

Updated 1101 GMT (1901 HKT) August 1, 2022

London (CNN Business)Europe's biggest economy is suffering — and it could spell trouble for the whole continent.

German retail sales slumped 8.8% in June compared with the same month a year ago, according to preliminary data from the country's Federal Statistics Office released Monday.
That's the biggest drop since officials started keeping records in 1994.

Germany's economy is in a gloomy spot. Soaring inflation has checked people's spending power, while a looming energy crisis threatens to tip the country into a recession.
Last week, official data showed the country stagnated in the second quarter.

While the European Union's economy grew by an unexpected 4% in the second quarter compared with last year, a slowdown in Germany — its manufacturing heart — could help drag it into reverse. The country accounts for about a quarter of the EU's gross domestic product.

And the ongoing energy standoff between Europe and Russia means that a recession is still very much on the cards.

Germany is particularly vulnerable. It has long relied on Moscow's natural gas exports to power its homes and heavy industry.

While Germany has managed to slash Russia's share of its gas imports to 35% from 55% before the start of the war in Ukraine, a sudden break could wipe €220 billion ($226 billion) out of its economy over the next two years, according to five of the country's top economic institutes.

That's a very real possibility. Russia has already turned off the taps to several European countries and energy companies in recent months. Over the weekend, Moscow cut Latvia off from its supplies for "violating conditions for gas withdrawal," without providing further details.

Anticipating the worst, Germany has already activated the second phase of its three-stage emergency gas plan, bringing it one step closer to rationing supplies to industry — a move that would deal a big blow to its economy and, by extension, the whole of Europe's.

Europe gets more bad news as recession fears deepen

Europe's biggest economy is suffering — and it could spell trouble for the whole continent. German retail sales slumped 8.8% in June compared to the same month a year ago, according to preliminary data from the country's Federal Statistics Office released Monday.

edition.cnn.com

 

[Glass🚬]

there will be a global recession in 2023, just dont think it wont affect u lel

we fully aware of the bank runs already happening china.

 

[Lool]

there will be a global recession in 2023, just dont think it wont affect u lel

we fully aware of the bank runs already happening china.

Agreed
All nations will experience recessions and global economy will stagnate

Even China is not exempt from this; lets not forget that most of the massive Chinese revenues are coming from the Western states themselves. When such rich states stagnates, China will stagnate since other nations arent as rich as the West to buy from China in the same quantities as the West does. Moreover, it was reported that China has been reporting false data regarding the massive capital outflows from the country.

This applies to Turkey too; if the West stagnates, so will Turkey. Recent Istanbul PMI data plummeted to 46.1 from 48 in the previous month. The only reason unemployment is reducinn in Turkey is because more businesses are shifting to Turkey but even that has its limits

 

[Gessler]

Meanwhile in Asia:

Bloomberg - Are you a robot?