Europe’s Stagnant Economy

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Europe’s economy stalled in the second quarter of 2023, registering no growth at the European Union level and growth of just 0.1 percent in the eurozone. Industrial production saw an especially sharp downturn in the final month of the quarter, falling 1.1 percent relative to the month before, while the volume of retail trade ticked down slightly. Two bright spots are inflation, which continued to slow, and unemployment, which remained both stable and around record lows. However, deteriorating economic sentiment across the board suggests it will be a while before European economies rebound.