The European Union (EU) released data on Wednesday ( yesterday). This proved her economic climate was satisfactory.
Inflation in Europe overall was 2.1% in July, beating the EU’s target. It was the first time inflation’s been above 2% since 2012 – which is good news. On the flip side, the economy grew less than expected in the second quarter – a paltry 0.3%, the weakest growth in two years. This was mostly down to high energy prices (because of rising oil prices) pushing up prices overall and squeezing household budgets. Recall US had a 4%; do the math to know how much this worth.
While Germany, the EU’s biggest economy, did well with unemployment at record lows, Spain on the hand – scored low.
The European Central Bank’s been slowly ramping down its lavish bond purchases (a.k.a. quantitative easing – where it effectively gives the economy training wheels), aiming to get out by the end of the year. It’s also decided to hold steady on interest rates – keeping them at record lows throughout the summer with plans to raise them in October 2019. All of this means that things will be getting pricier, eventually.
While the EU’s puttering along, the US economy is booming. It grew 4% in the second quarter – over ten times as much as the EU. That said, tensions between the two forces have been easing somewhat, which is good for both economies – trade between the EU and the US accounts for over half of the world’s total amount of goods produced and services provided.