Wednesday, October 5, 2022
US Daily News Onlne


OECD warns of recession in European economy due to inflation

The Composite Index of Key Indicators (CLI), which serves as an ‘economic thermometer’ to gauge a change in trend, tells…

By admin , in news , at May 10, 2022


The Composite Index of Key Indicators (CLI), which serves as an ‘economic thermometer’ to gauge a change in trend, tells the Organization for Economic Co-operation and Development (OECD) the loss of momentum in the growth rate of the euro area economy. confirms. As a result of inflationary pressures and worse expectations for construction area,

“The pace of growth in the CLI continues to point to a decline” europa and stable growth in the OECD region as a whole”, declared the advanced countries ‘think tank’, attributing the slowdown in European growth to “increased inflation and lower expectations in the manufacturing sector”.

euro area

Notably, the latest data for the euro area, corresponding to the month of April, has fallen to 100.09 MarksWhich represents the 18-hundredth in a year and a monthly decline of 0.39 points, including the deteriorating index of the four major euro economies.

Spain’s case decline CLI It is limited to 15 hundredths in relation to the previous month, to 100.48 points, still 0.79 points above the level a year ago.

Outside Europe, the CLI continues to show steady growth Canada, Japan You America, as well as for most major emerging market economies, particularly China (industrial sector) and India. However, the CLI in Brazil is pointing to a slowdown in growth.

OECD warns that the CLI components are fluctuating higher than normal as a result of uncertainties related to the war in Ukraine and Covid-19, thus “they should continue to be interpreted cautiously and their magnitude as a sign of strength”. Should be considered as a sign and not a measure of the growth of economic activity.