INDUSTRY NEWS
Eurozone Economic Growth Slows to 2003 Level
May 23, 2008
Source:Financial Times
Edinburgh--Eurozone economic growth has decreased to its slowest pace since 2003, showcasing the European Central Bank’s problems as oil prices drive inflation higher, according to a recent survey by the Edinburgh-headquartered Royal Bank of Scotland and NTC Economics.
In May, economic activity in the 15-country region grew only moderately, and jobs increased at the slowest rate since 2006, the Financial Times reported Friday
Increased oil prices, a stronger euro and the reduced U.S. economy have weighed on growth.
“The euro area private sector will have ground to a halt by mid-year,” said Jacques Cailloux of Royal Bank of Scotland.
At 3.3 percent in April, Eurozone inflation is already higher than its 2 percent target annual rate; rising oil prices could push rates up to 4 percent in the next few months, according to the Times.
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