Eurozone Faces Deepening Recession as Construction Sector Slumps
538 sats \ 8 comments \ @TomK 18 Jul econ
The Eurozone is sinking further into recession as one sector after another falters. Following dismal industrial performance and inflation-weary consumers, the construction industry has now entered recession territory. Despite significant stimulus measures and state-driven demand in infrastructure, Brussels' central planners are struggling to revive the economy.
Key Data: Construction output in the Euro Area fell by 2.40% in May 2024 compared to the same month the previous year.
Historically, construction output averaged -0.20% from 1996 to 2024.
The sector saw a peak of 44% growth in April 2021 and a nadir of -31.10% in April 2020.
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55 sats \ 1 reply \ @0xbitcoiner 18 Jul
That doesn't sound good at all. Portugal is about to build a high-speed train and a new airport... What's the tipping point for a country to be considered in recession, both for certain industries and the economy as a whole?
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79 sats \ 0 replies \ @TomK OP 18 Jul
according to the definition in clown world, it takes two consecutive quarters in which the gross domestic product is negative. among real economists, of course, government spending must be subtracted because only the private sector creates the goods and services we need. that means if you subtract the massive debt programs, the eurozone and especially germany have been in recession for years. the private sector keeps shrinking
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66 sats \ 0 replies \ @BitcoinAbhi 18 Jul
It was early this year when ING warned that there were “clear signs” of volumes starting to shrink, with home buyers and companies reluctant to invest in new buildings amid a weaker economy, high interest rates and increasing building costs.
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56 sats \ 1 reply \ @IamSINGLE 18 Jul
Europe is so developed. It must not require so much construction. Infrastructure is there. This slump had to be in developed nations!
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13 sats \ 0 replies \ @TomK OP 18 Jul
then please take a trip to Germany. the infrastructure of the 70s is rotting away there
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45 sats \ 2 replies \ @Coinsreporter 18 Jul
It's not only Eurozone but most of the developed countries are facing this downturn in construction! The prime reason is companies are not interested to build too much infrastructure there because of economic instability.
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24 sats \ 1 reply \ @TomK OP 18 Jul
The main thing now is to build up the war economy everywhere
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45 sats \ 0 replies \ @Coinsreporter 18 Jul
Yes, I agree 💯.
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