According to official data, the economic growth rate of the EU27 in the first three quarters of 2023 was zero, compared with 0The 1% decline improved slightly, but remained subdued. Regardless of the statistical rules, it is clear that the pace of economic development in the EU27 is very weak, and there may even be signs of recession. Among them, the German economy has fallen into recession, with a year-on-year contraction of 08%, down 04%。The locomotive that once underpinned the EU's economy is now the biggest drag. Other core EU member states, such as France and Italy, have also seen their economic performance skewed sharply and growth sluggish.
While the overall economic growth in the EU has weakened, the euro has been trading at a higher rate against the dollar, leading to inflation levels in European countries reaching multi-decade highs. After taking into account the goods and services*** factor, the EU's nominal GDP reached a new high, exceeding 13$52 trillion.
Germany, the EU's economic engine, has fallen into recession this year. In the third quarter of 2023, the German economy shrank by 08%, down 04%。This makes Germany the only country to experience an economic contraction among Europe's large economies. Once the "locomotive" of the EU's economic development, it has now become the biggest drag on the economic recovery of the entire European economy. The Economist even referred to Germany as the "European patient".
The causes of a recession in Germany are not uncommon. First, domestic consumption has continued to weaken and business investment has fallen sharply, putting economic growth under extreme pressure. Secondly, the global tensions have dealt a major blow to German exports, and the export business has been severely affected. In addition, Brexit has also had a big impact on Germany's economy, and the relationship between the two countries has been plagued by uncertainty.
For Germany, it will not be easy to get out of the recession. ** Proactive economic policy measures are needed to stimulate investment and consumer demand to promote economic recovery and growth. At the same time, Germany also needs to strengthen cooperation with other EU countries to jointly address external challenges and achieve stability and growth for the entire EU economy.
France, the EU's second-largest economy, has also seen a skewed economic growth performance. In the third quarter of 2023, the French economy grew by 01%, the year-on-year growth rate is only 03%。Economic activity is expected to remain slow in the coming months, with continued weakness in the industrial sector and waning momentum in the services sector. The main challenges include high unemployment, rigid labour markets and a lack of innovation.
France** needs to take measures to strengthen the structural reform of the economy, improve the flexibility and innovation of the labor market, and stimulate the vitality of the economy. In addition, it is also necessary to increase investment in scientific and technological innovation and emerging industries to promote the transformation and upgrading of the economy.
Italy, the EU's third-largest economy, has also seen a disappointing economic growth. In the third quarter of 2023, the Italian economy grew by 01%, with a year-on-year growth rate of zero. The OECD said in its economic outlook report that high inflation is eroding household incomes, debt risk premiums are rising, and downside risks to the economy are increasing.
Italy needs to take steps to address the many problems it faces. First, steps are needed to reduce debt risk and improve fiscal positions. Second, we need to strengthen structural reforms, improve the flexibility and competitiveness of the labor market, and promote the structural transformation of the economy. At the same time, we will increase investment in innovation and science and technology, cultivate emerging industries, and achieve sustainable economic development.
The EU-27 countries faced severe challenges due to sluggish economic growth in the first three quarters of 2023. The skewed economic growth performance of core member states such as Germany, France, and Italy has weighed on the economic recovery of the entire European economy.
In the face of these problems, EU countries need to work together, strengthen cooperation, and adopt effective economic policy measures to promote economic recovery and growth. In addition, stimulating investment, boosting consumption, and strengthening structural reforms are all important measures.
At the same time, countries also need to recognize the changes and uncertainties in the external environment, focus on improving their competitiveness and adaptability, and actively respond to challenges. It is only through cooperation and innovation that the stability and sustainable development of the European economy can be achieved.
For China, we need to maintain stable economic growth, improve our competitiveness and innovation capabilities, and achieve economic transformation and upgrading. Compared to Europe and other large economies, we are still in a strong position in terms of economic growth, but we also face a number of challenges. Therefore, we need to remain vigilant and continue to carry out reforms and innovations to ensure the sustainable development of the economy. At the same time, we will maintain close cooperation with the EU and other countries to achieve mutual benefit and win-win results, and jointly promote the prosperity and stability of the global economy.