EURO ZONE GROWTH REDUCES BY HALF




Serhat TUNAR -TDO- According to data released by the European Union's statistical agency Eurostat, the growth rate in the Eurozone declined by half in the second quarter of the year, but experienced a significant decline in July. Eurostat’s data raised expectations that the European Central Bank will loosen its monetary policies in September.

According to data released by Eurostat, 16 countries using the common currency, covering April, May and June period of 0.2 percent compared to the first quarter, compared to the same period last year grew by 1.1 percent. The growth rate was 0.4 percent in the previous period.

Meanwhile, inflation, which the European Central Bank plans to keep at 2 percent, fell to 1.1 percent in July, the lowest level in the last 17 months.

Economists say that they expect these data, which are indicative of financial weakness, to continue, and that they expect the central bank to enter a new period of monetary expansion and interest rate cuts.


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