Eurozone Economy Adapted Better to Iran War than 2022 Crisis
Dow Jones
Aug 17
1509 GMT - The eurozone's 0.4% rise in second-quarter GDP shows the economy has proved more resilient than the last energy-price surge in 2022, Capital Economics' Neil Shearing says in a note. The terms-of-trade shock has been smaller than feared as the jump in global energy prices has been more modest, particularly for natural gas. Europe has also reduced dependence on fossil fuels, as imports of oil have fallen by about 10% and natural gas by around 15% compared with 2022, Shearing says. Fiscal policy is also more supportive, and households have reduced savings. Manufacturers appear to have brought forward production in the second quarter to get ahead of perceived increases in energy costs further ahead, he says.
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