According to the deputy president of the European Central Bank (ECB); economic growth in the Eurozone has slowed and may soon reach zero.
According to Reuters, Luis de Guindos stated at a conference that “we are witnessing that in the third and fourth quarters there is a considerable slowdown and we may find ourselves with growth rates close to zero.”
Due to rising energy prices and the loss of Russian natural gas, which has increased the possibility of energy rationing; during the forthcoming heating season, economic productivity has been suffering.
High energy prices drove annual inflation in the euro area to 9. 1% in August and are predicted to push it even higher this month to 9. 6%, a record high for the bloc.
This month, the ECB boosted interest rates by an unprecedented 75 basis points, mere weeks after a 50 basis-point move in order to fight inflation.