Daily Sabah logo

Politics
Diplomacy Legislation War On Terror EU Affairs Elections News Analysis
TÜRKİYE
Istanbul Education Investigations Minorities Expat Corner Diaspora
World
Mid-East Europe Americas Asia Pacific Africa Syrian Crisis Islamophobia
Business
Automotive Economy Energy Finance Tourism Tech Defense Transportation News Analysis
Lifestyle
Health Environment Travel Food Fashion Science Religion History Feature Expat Corner
Arts
Cinema Music Events Portrait Reviews Performing Arts
Sports
Football Basketball Motorsports Tennis
Opinion
Columns Op-Ed Reader's Corner Editorial
PHOTO GALLERY
JOBS ABOUT US RSS PRIVACY CONTACT US
© Turkuvaz Haberleşme ve Yayıncılık 2023

Daily Sabah logo

عربي
  • Politics
    • Diplomacy
    • Legislation
    • War On Terror
    • EU Affairs
    • Elections
    • News Analysis
  • TÜRKİYE
    • Istanbul
    • Education
    • Investigations
    • Minorities
    • Expat Corner
    • Diaspora
  • World
    • Mid-East
    • Europe
    • Americas
    • Asia Pacific
    • Africa
    • Syrian Crisis
    • Islamophobia
  • Business
    • Automotive
    • Economy
    • Energy
    • Finance
    • Tourism
    • Tech
    • Defense
    • Transportation
    • News Analysis
  • Lifestyle
    • Health
    • Environment
    • Travel
    • Food
    • Fashion
    • Science
    • Religion
    • History
    • Feature
    • Expat Corner
  • Arts
    • Cinema
    • Music
    • Events
    • Portrait
    • Reviews
    • Performing Arts
  • Sports
    • Football
    • Basketball
    • Motorsports
    • Tennis
  • Gallery
  • Opinion
    • Columns
    • Op-Ed
    • Reader's Corner
    • Editorial
  • TV

Eurozone inflation stays in negative territory

by Anadolu Agency

BRUSSELS Mar 02, 2015 - 12:00 am GMT+3
by Anadolu Agency Mar 02, 2015 12:00 am
European inflation remains in negative territory, the European statistics authority said in a statement yesterday. Eurozone annual inflation is expected to be -0.3 percent in February 2015, a slight increase from -0.6 percent in January, according to a flash estimate from Eurostat, the statistical office of the European Union. Inflation also declined by 0.2 percent in December, Eurostat said.

With inflation in negative territory for over two months in the eurozone, the lack of economic growth is showing, economists said. Exports dropped 1.1 percent in January, according to EuroStat. "Headline inflation is low and the ECB (European Central Bank) expects it to only gradually head back toward target levels. This creates a serious risk that inflation expectations will head down, too," commented Christian Schulz, an economist with Berenberg Bank in Hamburg, Germany, in a note published yesterday.

In other words, it will take time for inflation to return to target levels, thus augmenting the risks for the latter to decrease during this period. Schulz pointed to another danger sign for deflation: low credit demand. "In a normal recovery, an economic upswing would be closely followed by firms and households beginning to borrow from banks to invest and spend. There is no sign of that yet. Bank loans to households were down by 2.3 percent year-on-year in December."

Weak investment is another challenge for the eurozone. "The stock exchanges have risen, but it's a bubble," said Paris-based economist Phillippe Dessertine in a note on Monday. "Businesses are still cautious in the wake of the Greek debt debacle and exchange rate volatility. This is (a) key missing element for growth."

A recent report by the International Monetary Fund (IMF) indicated excessive corporate debt in Europe as another drag on business investment. "The relative importance of different factors varies across countries. Financial constraints (from the European Commission consumer and business survey) have limited investment, particularly in stressed countries. High corporate sector leverage and uncertainty are additional impediments to investment in Italy, Spain, and to a lesser extent in Portugal and France," the IMF report said.
  • shortlink copied
  • Last Update: Mar 02, 2015 5:13 pm
    RELATED TOPICS
    fight-against-terrorism DEUTSCHE-BANK US-LIBYA-RELATIONS
    KEYWORDS
    business
    The Daily Sabah Newsletter
    Keep up to date with what’s happening in Turkey, it’s region and the world.
    You can unsubscribe at any time. By signing up you are agreeing to our Terms of Use and Privacy Policy. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
    No Image
    Muslims around the world celebrate Ramadan Bayram
    PHOTOGALLERY
    • POLITICS
    • Diplomacy
    • Legislation
    • War On Terror
    • EU Affairs
    • News Analysis
    • TÜRKİYE
    • Istanbul
    • Education
    • Investigations
    • Minorities
    • Diaspora
    • World
    • Mid-East
    • Europe
    • Americas
    • Asia Pacific
    • Africa
    • Syrian Crisis
    • İslamophobia
    • Business
    • Automotive
    • Economy
    • Energy
    • Finance
    • Tourism
    • Tech
    • Defense
    • Transportation
    • News Analysis
    • Lifestyle
    • Health
    • Environment
    • Travel
    • Food
    • Fashion
    • Science
    • Religion
    • History
    • Feature
    • Expat Corner
    • Arts
    • Cinema
    • Music
    • Events
    • Portrait
    • Performing Arts
    • Reviews
    • Sports
    • Football
    • Basketball
    • Motorsports
    • Tennis
    • Opinion
    • Columns
    • Op-Ed
    • Reader's Corner
    • Editorial
    • Photo gallery
    • Jobs
    • privacy
    • about us
    • contact us
    • RSS
    © Turkuvaz Haberleşme ve Yayıncılık 2021