All articles tagged with #gdp contraction
European stock markets opened lower amid concerns over the UK economy shrinking 0.3% in April and record declines in UK exports to the US due to tariffs, with ongoing trade tensions and macroeconomic worries impacting investor confidence.
The US economy contracted in the first quarter due to trade impacts and reduced household spending, while Canada benefited from export surges, and India experienced stronger-than-expected growth. Europe faces challenges with business pessimism in China and slowing inflation, and Asia's traditional export model is under threat as US trade policies shift. Japan lost its status as the world's largest creditor nation, and emerging markets show mixed economic signals.
The US economy contracted by 0.2% in Q1 2025, the first decline since 2022, due to increased imports and decreased government spending amid ongoing trade tensions. Despite this, cryptocurrency markets remained largely unaffected, with Bitcoin trading flat and other tokens showing minimal movement, reflecting a muted market response to the economic slowdown.
The UK economy contracted by 0.3% in October, following a 0.2% rise in September, raising concerns about a potential recession. While some analysts believe it is a temporary decline before a rebound, the broad-based nature of the contraction across all major sectors suggests otherwise. The lack of film and TV production, a slowdown in demand from China, and a lack of direction in industrial strategy from the UK government are contributing factors. The construction industry and professions dependent on the property market are also at risk. The Bank of England is expected to keep interest rates steady, prioritizing inflation control over a shallow recession.
The UK economy contracted by 0.5% in July, the fastest pace in seven months, due to declines in services output, strikes, and wet weather. This unexpected dip raises concerns about a potential mild recession, with major investment banks revising down their growth forecasts. Despite the contraction, some economists believe the economy is still growing, albeit at a slow pace. The Bank of England may still raise interest rates next week, despite the weakening economic indicators. The pound declined against the US dollar and euro in response to the GDP figures.
Sweden's Ministry of Finance predicts a deeper than expected GDP contraction of 1% in 2023 due to a challenging economic environment, worsened by high inflation rates, eroding real wages, and plummeting house prices. The European Commission also predicts negative GDP growth for Sweden in 2023. While inflation rates are starting to cool, Swedish households are unlikely to get much reprieve from the figures, and real wages are lagging behind. Danish Bank recently revised its estimate of a 20% drop in real house prices to a 25% drop, leaving prices still only halfway to the bottom.