Eurozone industrial output plunges in May
The U.K.’s decision to leave the European Union on June 23 caused uncertainty and prior to this, expectations for the second quarter were already towards slowing growth.
According to the announcement from the EU’s statistics agency obtained on Wednesday, industrial production outpaced the earlier estimate of a 0.8% decline and plunged by 1.2% in May compared to April. Compared to May 2015, industrial output increased only slightly by 0.5%.
Economists mostly forecast that the Eurozone economy expanded around 0.3-0.4% for the quarter ending in June after witnessing an expansion of 0.6% in the first quarter.
In the upcoming months, a further slowdown is expected. According to ECB President Mario Draghi’s forecasts, since the UK is the second largest export market in the zone after the US, and a very important currency partner for the union, the UK’s decision to leave the European Union will affect economic growth by decreasing around 0.5% within three years.
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