Europe's recession may already be over | CNN Business

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Europe’s recession may already be over

Official data showed that French GDP was up 0.5% in the April-June period, compared with the first quarter of 2023, driven by a strong performance in foreign trade. “Exports bounced back this quarter … as well as imports to a lesser extent,” the French national statistics office said in a statement. Spain reported GDP growth of 0.4%, just a shade weaker than in the first quarter.

Lower inflation and rising wages were supporting consumption but higher interest rates, and uncertainty about further rate hikes were slowing investment. “This was seen as being compounded by a slowdown due to the weak manufacturing sector, with headwinds from the slower than expected recovery in China. However, respondents considered services sector resilience as partially countering this weakness and thus broadly maintained their earlier expectations for real GDP growth in 2023,” the ECB said.

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