Page 74 - RusRPTJun24

- Germany is in a recession with a GDP decline of 0.22% over the past year and a 0.12% decrease over two years, with only a 0.34% growth since Q4 2019.
- France grew by 1.07% over the past year, 1.91% over two years, and 2.16% since Q4 2019.
- Spain grew by 0.61% over the past year, 2.81% since Q1 2022, and 4.55% since Q4 2019.
- Italy saw a growth of 2.4% over the past year, an impressive 6.5% over two years, but a more modest 3.7% since the pre-COVID period of Q4 2019.
Eurostat did not provide any additional information on the GDP structure, so a decomposition of key factors is not possible.
Weak demand is one of the reasons for the slowdown in inflation in Europe over the past year, unlike in the US, where higher consumer demand has led to stronger inflationary pressures. In the US, consumer behavior is inadequate in the context of current conditions, with savings decreasing to zero and consumer credit increasing at record rates. In Europe, the public is somewhat more rational, but at the cost of economic stagnation.
74 RUSSIA Country Report June 2024 www.intellinews.com