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BUSINESS Saturday 1 February 2020
A25

Eurozone economy records worst year since 2013

By PAN PYLAS between the U.S. and
Associated Press China have eased follow-
LONDON (AP) — The eu- ing their so-called Phase 1
rozone economy, which is agreement and amid the
made up of the 19 coun- greater Brexit certainty.
tries that use the euro cur- "With an encouraging re-
rency, ended 2019 with a cent rise in sentiment indi-
whimper and recorded its cators, we still think that the
worst year of growth since eurozone economy should
it was mired in a debt crisis see growth pick up gradu-
in 2013. ally in 2020," said Rosie Colt-
In its first estimate for the horpe, European econo-
quarter, statistics agency mist at Oxford Economics.
Eurostat said the eurozone In a separate report, Eu-
grew by only 0.1% from rostat found that the an-
the previous three-month nual rate of inflation across
period. That is its lowest the eurozone rose to 1.4%
rate since the first quarter in January from 1.3% the
of 2013, when the single previous month, largely as
currency bloc was fight- a result of higher energy
ing a debt crisis that nearly prices. The core inflation
spelled ruin for the euro it- rate, which strips out vola-
self. tile items such as food and
For 2019 as a whole, the European Central Bank President Christine Lagarde, Cyprus' Economy Minister Constantinos Pe- energy, fell to 1.1% in Janu-
eurozone grew by only trides, Eurogroup President Mario Centeno, European Commissioner for Economy Paolo Gentiloni, ary from 1.3%.
Austrian Finance Minister Gernot Blumel and German Finance Minister Olaf Scholz, from left, talk
1.2% - again its lowest rate each other during a meeting of European Union Finance Ministers in Eurogroup format at the Eu- The fall in the core rate is
since 2013, when it shrank ropa building in Brussels, Monday, Jan. 20, 2020. likely be a cause for con-
by 0.2%. Associated Press cern for policymakers at
Though Eurostat did not the European Central Bank,
provide explanations to its Uncertainty related to Brit- France has endured a was due to weak domestic including its new president,
figures published Friday, ain's departure from the series of strikes over the demand. Christine Lagarde. By what-
the report confirms how EU, which is officially tak- winter that had a mod- Spain provided some ever measure, inflation re-
the eurozone lost steam as ing place later Friday, has est impact on household counterweight as it grew mains below the European
a result of worries over a also hobbled business and spending. The main reason by a solid quarterly rate of Central Bank's goal of just
trade war between the U.S. trade. why France unexpectedly 0.5%, largely on the back below 2%, and could fall
and China that is having The quarterly growth re- shrank during the quarter of a strong export perfor- further next month if the
knock-on effects around corded was lower than was related to a draw- mance. recent drop in oil prices fol-
the world. Following the the 0.2% anticipated in the down of stocks by firms. Many countries, including lowing the virus outbreak in
conclusion of a first round markets and was largely That has the potential to be Germany, have still to re- China persists.
of trade talks with China, due to the fact that two reversed in the first quarter port quarterly numbers so The ECB is running a stimulus
President Donald Trump is of the eurozone's biggest of 2020, which could see the overall eurozone num- program to nudge up infla-
turning his gaze towards Eu- economies, France and France bounce back. ber could be revised next tion and growth, but is also
rope and is threatening tar- Italy, both contracted. Ac- Italy's quarterly perfor- month. undergoing a thorough
iffs over what he considers cording to their respective mance was its worst since There are hopes that Eu- review of how it tries to do
to be the unfair treatment statistics agencies, their 2013 and though a break- rope could enjoy a spring- that, including whether it
of American businesses by economies shrank by 0.1% down was not provided, back this year, largely be- should change its inflation
the European Union. and 0.3%. most economists think it cause the trade tensions target.q
Amazon is big ... really, really big; workforce hits 500K

By JOSEPH PISANI bers of its Prime service, Washington Post. Amazon
AP Retail Writer w hich offers faster ship- has said it shouldn't be bro-
NEW YORK (AP) — Need ping and other perks. On ken up, and that it pays all
more proof that Amazon is Friday, even while the the taxes it owes.
big? It came this week. Dow fell 600 points, Ama- Being under the micro-
Amazon's U.S. workforce zon shares soared passed scope has not slowed its
has topped 500,000 for $2,000 apiece, doubling in phenomenal growth. Sales
the first time, up 43% from price in about two years. during the holiday sea-
the year before and more Amazon's growth comes son soared. Its other busi-
than triple what it was with increased scrutiny. nesses, including cloud
five years ago, the com- Some Democratic presi- computing and advertis-
pany said Friday. It gained dential candidates want ing, grew, too, despite in-
150,000 workers last year, to break it up. Others want creased competition from
more than the size of Ap- it to pay more taxes. It is other big tech companies. In this Feb. 14, 2019 file photo, people stand in the lobby for
ple's entire workforce. a regular target of Presi- Analysts at Benchmark Amazon offices in New York.
When it reported its quar- dent Donald Trump, who said the results were a Associated Press
terly performance Thurs- has been tweeting simi- "not-so-subtle reminder
day , Amazon revealed lar complaints as he fights Amazon is still king." side of its Seattle home, That group of workers is up
that 150 million people with Amazon founder Jeff Amazon said it has 30,000 in cities such as Chicago, 50% in the last year and a
were paying to be mem- Bezos, who also owns The workers in tech offices out- Denver and Austin, Texas. half, Amazon said. q