[Economics] Economy in Europe grows slowly due to the war in Ukraine

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The pace of growth is visible in the large European economies, such as Germany, France, Italy, Spain or the United Kingdom.

 

The Organization for Economic Cooperation and Development (OECD) sees signs of a slowdown in the economy in Europe in its advanced composite indicators published this Monday, April 11, 2022, the first to take into account the effects of the war in Ukraine.

This inflection in the rate of growth is visible in the large European economies, such as Germany, France, Italy, Spain or the United Kingdom, while in the United States, Japan or Canada the trend remains stable.

Study Indicators
The advanced composite indicators for March - statistics that indicate fluctuations in the economic cycle between six and nine months in advance - fall for most of the countries of the Old Continent, although they generally remain above the 100 level, which marks the long-term average.

The decline in that month is important in the United Kingdom (28 hundredths to 100.58 points), France (25 hundredths to 99.45 points) or Italy (23 hundredths to 100.80 points) and somewhat less pronounced in Spain (16 hundredths to 101.11 points) or in Germany (13 hundredths to 100.63 points).

In the euro zone as a whole, the monthly decrease is 17 hundredths to 100.43 points.

 

Analysis in the American continent
Outside Europe, the indicator rises 4 hundredths for the United States to 100.09 points, remains unchanged for Japan at 100.55 points and decreases by 5 hundredths for Canada at 100.09 points.

Among the Latin American Member States of the OECD, the most outstanding is the violent fall of Chile, with a drop of 48 hundredths in March, which represents an acceleration of that trend that was found in previous months.

Its indicator remains at 98.88 points, one of the lowest in the organization and clearly below the 100 level of the long-term average.

Outside the OECD, among the large emerging economies, Brazil stands out for the considerable drop in its indicator in March (51 hundredths to only 97.82 points), which once again points to a turning point in its economic growth.

In a first report evaluating the economic impact of the Russian invasion of Ukraine presented on March 17, the organization estimated that the global gross domestic product (GDP) could be reduced by about two points.

Its authors then specified that the euro zone, due to its dependence on fossil fuels imported from Russia, could cost 1.4 points of GDP, while in the United States the impact would be less (0.9 points) .

 

Link: https://www.elcomercio.com/actualidad/negocios/economia-europa-crece-lentamente-ucrania.html