Just-released macro data for the eurozone provides both a look in the rear-view mirror as well as a view through the side window. And the picture we are seeing is one of fading industrial resilience and stark divergence across the eurozone.<\/p>\n
The look in the rear-view mirror shows a relatively resilient eurozone economy in the second quarter, after the US frontloading boost in the first quarter. GDP growth was confirmed at 0.1% quarter-on-quarter, from 0.6% QoQ in the first quarter. However, the eurozone economy is anything but synchronised currently, with GDP growth ranging from -1% QoQ in Ireland and -0.1% QoQ in Germany and Italy to 0.6% QoQ in Spain and 0.7% QoQ in Portugal.<\/p>\n
Looking through the side mirror, however, paints a less favourable picture as industrial production plunged by 1.3% month-on-month in June, from +1.1% MoM in May. On the year, eurozone industrial production was only marginally up. With today\u2019s data, the strong surge in the first quarter due to the US front-loading of eurozone goods ahead of higher tariffs has basically been reversed entirely.<\/p>\n
When looking at eurozone countries and developments since the start of 2020, structural shifts in intra-eurozone competitiveness as well as sector-specific specialisation become very clear. While industrial production in Germany and Italy remains more than 10% and 5% below January 2020 levels respectively, Ireland has seen a sharp surge, and countries like the Netherlands and Belgium have also recorded solid gains. Drivers behind these shifts are energy costs and competition from China.<\/p>\n","protected":false},"excerpt":{"rendered":"Just-released macro data for the eurozone provides both a look in the rear-view mirror as well as a…\n","protected":false},"author":2,"featured_media":70149,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[45,49,48,46],"class_list":["post-70148","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-ca","tag-canada","tag-economy"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/70148","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=70148"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/70148\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/70149"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=70148"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=70148"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=70148"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}