Javier Molina, senior market analyst for eTorohas shared with Cointelegraph en Español some comments regarding the latest inflation data in the Eurozone, and its GDP for the third quarter of the year.
In the current scenario, Molina states that the question in the air is whether the ECB will follow its latest indication that rates will rise by 0.5 basis points instead of 0.75. According to him, carrying out such action would represent a complex issue right now because the impact of the measures would not be seen for now.
In that same sense, Molina points out that the inflation data for the eurozone, which stands at 10.7%, again indicate that prices are far from having peaked. “We are going to have to be very aware of whether the rate hike by the ECB is having an effect, something that has not happened for now, since inflation continues its upward course”Molina said.
“On the other hand, if we look at the underlying, we see that it is also at a historical record, 5%. By items, energy and food continue to rise, and the depreciation of the euro does not help either, since inflation is imported”Molina added, after also mentioning that in any case of any new measure there is always a delayed effect and the situation will have to continue to be monitored.
Regarding GDP, Molina spoke that meanwhile the GDP of the euro zone for the third quarter was at a figure of 0.2%, compared to 0.8% in the second quarteris showing clear signs that the dreaded recession is getting closer. “Behind these data is inflation on the rise; the increase in costs; the rise in interest rates that causes less consumption; geopolitical conflicts; and a global economic slowdown”he pointed.
Finally, Molina commented that it is also necessary to consider that some countries are already in contraction, such as Austria or Belgium. Therefore, The indication in this context, according to Molina, is that the last quarter of the year may be the first in which nothing grows or is done in negative terms, which would open the doors to having a very negative start to 2023 as well.
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