The recovery of the Eurozone continues smoothly, even if the first effects of the chip crisis come from Germany. But what is really holding back the enthusiasm is the leap in inflation, which reached its highest level in 13 years in October. This was underlined by Ben Laidler, eToro’s global markets strategist, who comments on Eurostat data released today: “The Eurozone’s third quarter GDP increased by 2.2% compared to the previous quarter, above expectations. GDP at near pre-pandemic levels. The rebound was led by France and Italy, while it disappointed Germany burdened with the shortage of semiconductors that hit a key sector for Teutonics such as the auto industry. This economic momentum supports our forecast. of a 5% growth rate for the Eurozone this year, as well as the strong rebound in corporate earnings “.
“However – continues the expert – data on inflation are holding back enthusiasm. The consumer price index, in October, turned out to be higher than expected, highlighting future risks. The rate of 4.1% compared to last year is the highest in 13 years and is expected to increase further towards the end of the year, given higher energy costs and supply shortages. This represents a growing risk, which politicians and companies will have to face “.