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Recent Statistical Trends.
EU GDP Growth.
The EU economy saw a slowdown in growth to only 0.3% in the third quarter of 2004, with the year-on-year growth rate easing to 1.8% as a result (see Exhibit 1).
This reflected particular weakness in Germany and France in the third quarter, although growth held up better in Spain and Italy during that period.
Earlier oil price rises mean that headline EU inflation remains above 2%, but underlying core inflation is still consistent with the European Central Bank's revised target of keeping inflation "below but close to 2%" over the medium term. The…
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