2023-08-06 19:29:02
Brussels : Ireland and France are the crutches for the European Union to hold on amid fears of a recession. Even as the ECB continues to raise interest rates, the shadow of economic recession is spreading across the EU. Meanwhile, Ireland and France are excelling in economic growth. It is believed that the status of the EU can be improved by holding on to the excellence of these two countries.
The ECB raised interest rates to curb inflation. Even though the price increase is slow, it remains high. The IMF report pointed out that the economy of the European continent contracted in the first three months of this year. The report stated that Germany’s growth will slow to 0.3 percent in 2023.
Last month, Eurostat revealed that the rate of inflation in the EU was 5.5%. In this context, the ECB decided to raise the interest rate in keeping with the EU’s stated goal of reducing the inflation to 2%. Even as these measures continue, signs of economic recession are coming from most of the EU countries.
But prices have fallen in Ireland. Prices in Ireland have fallen below the EU average in recent months. Ireland has seen economic growth of 3.3 percent. France’s GDP growth has also been impressive. The French economy grew by 0.5 percent in the April-June period. This growth was in line with economists’ forecast of 0.1 percent. Together, these two factors eased the impact of the recession in the EU as a whole.
Economists often say that the cure for high inflation is high inflation. When prices are too high, people cut back on spending. As part of that, experts estimate that goods will not be able to be bought and prices will fall. But this is not happening in the EU. Retail prices are relatively stable in the EU. In this context, a section is also raising concerns that the EU’s measures to raise interest rates will have results.
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#Economic #recession #Ireland #France #hope
