Saudi Press

Saudi Arabia and the world
Thursday, Oct 02, 2025

Eurozone panic: Brexit, Boris and Trump cause chaos for EU growth

Eurozone panic: Brexit, Boris and Trump cause chaos for EU growth

BREXIT and international trade disputes have butchered the EU economy, which has grown by just half of what it had done the previous quarter, new figures indicate.

The gross domestic product (GDP) for the eurozone has chugged along at just 0.2 percent compared to the previous quarter, German publication Finanz and Wirtschaft reports. In the second quarter of the new year, the eurozone economy’s growth was stunted due to weaker global activity put down to trade disputes with US President Donald Trump. Brexit uncertainty after top eurocrats refused to budge on the Irish backstop with former Prime Minister Theresa May was also to blame.

The Berlin DIW Institute expects “little more than stagnation” after Germany and France both grew by 0.2 percent despite being the largest economies in the EU.

There are concerns that a hard Brexit could spark an economic crisis throughout the eurozone.

Nicola Nobile, lead eurozone economist at consultancy Oxford Economics, said: “The eurozone data today confirm that the economy has moved down a gear as worsening external conditions and the increase in uncertainty continue to take their toll.

“Looking forward, the continued weakness in eurozone surveys suggest that a robust pick-up in GDP growth in H2 2019 is not on the cards.”

Spain did better at 0.5 percent, statistic office Eurostat announced today.

Meanwhile Britain’s was recorded at 0.3 percent.

It was expected the eurozone would record a 0.4 percent growth as it did the previous quarter.

As a result of the economic slowdown, the European Central Bank (ECB) has signalled further easing of its monetary policy.

ECB chief Mario Draghi said several options are in the process of being considered.

These include the resumption of bond purchases to higher penalties for borrowers.

Mr Draghi said last week that the economic outlook was becoming “worse and worse”.

Eurostar cited trade conflicts and Brexit as reasons behind the slump in growth across the board.

The European Commission said as result of threats from both Boris Johnson over a no deal Brexit and President Trump over tariffs linked to a trade spat with the bloc, Brussels is only expecting economic growth of 1.2 percent for the year as a whole.

The Commission predicts this should increase to 1.5 percent in 2020.

Despite this, Europe’s unemployment rate has fallen to its lowest level in 11 years.

Less than 12.4 million Europeans are unemployed, 45,000 less than in the previous month.

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Trump Organization Teams with Saudi Developer on $1 Billion Trump Plaza in Jeddah
Electronic Arts to Be Taken Private in Historic $55 Billion Buyout
Colombian President Petro Vows to Mobilize Volunteers for Gaza and Joins List of Fighters
Nvidia and Abu Dhabi’s TII Launch First AI-&-Robotics Lab in the Middle East
UK, Canada, and Australia Officially Recognise Palestine in Historic Shift
New Eye Drops Show Promise in Replacing Reading Glasses for Presbyopia
Dubai Property Boom Shows Strain as Flippers Get Buyer’s Remorse
Top AI Researchers Are Heading Back to China as U.S. Struggles to Keep Pace
JWST Data Brings TRAPPIST-1e Closer to Earth-Like Habitability
UAE-US Stargate Project Poised to Make Abu Dhabi a Global AI Powerhouse
Trump and Starmer Clash Over UK Recognition of Palestinian State Amid State Visit
Saudi Arabia cracks down on music ‘lounges’ after conservative backlash
Saudi Arabia Signs ‘Strategic Mutual Defence’ Pact with Pakistan, Marking First Arab State to Gain Indirect Access to Nuclear Strike Capabilities in the Region
Sam Altman sells the 'Wedding Estate' in Hawaii for 49 million dollars
Turkish car manufacturer Togg Enters German Market with 5-Star Electric Sedan and SUV to Challenge European EV Brands
World’s Longest Direct Flight China Eastern to Launch 29-Hour Shanghai–Buenos Aires Direct Flight via Auckland in December
New OpenAI Study Finds Majority of ChatGPT Use Is Personal, Not Professional
Kuwait opens bidding for construction of three cities to ease housing crunch.
This Week in AI: Meta’s Superintelligence Push, xAI’s Ten Billion-Dollar Raise, Genesis AI’s Robotics Ambitions, Microsoft Restructuring, Amazon’s Million-Robot Milestone, and Google’s AlphaGenome Update
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
Could AI Nursing Robots Help Healthcare Staffing Shortages?
Turkish authorities seize leading broadcaster amid fraud and tax investigation
Qatari prime minister says Netanyahu ‘killed any hope’ for Israeli hostages
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Big Oil Slashes Jobs and Investments Amid Prolonged Low Crude Prices
Social Media Access Curtailed in Turkey After CHP Calls for Rallies Following Police Blockade of Istanbul Headquarters
Did the Houthis disrupt the internet in the Middle East? Submarine cables cut in the Red Sea
Gold Could Reach Nearly $5,000 if Fed Independence Is Undermined, Goldman Sachs Warns
Uruguay, Colombia and Paraguay Secure Places at 2026 World Cup
Trump Administration Advances Plans to Rebrand Pentagon as Department of War Instead of the Fake Term Department of Defense
Tether Expands into Gold Sector with Profit-Driven Diversification
Trump’s New War – and the ‘Drug Tyrant’ Fearing Invasion: ‘1,200 Missiles Aimed at Us’
At the Parade in China: Laser Weapons, 'Eagle Strike,' and a Missile Capable of 'Striking Anywhere in the World'
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
Israeli Airstrike in Yemen Kills Houthi Prime Minister
After the Shock of Defeat, Iranians Yearn for Change
YouTube Altered Content by Artificial Intelligence – Without Permission
Iran Faces Escalating Water Crisis as Protests Spread
More Than Half a Million Evacuated as Typhoon Kajiki Heads for Vietnam
HSBC Switzerland Ends Relationships with Over 1,000 Clients from Saudi Arabia, Lebanon, Qatar, and Egypt
Sharia Law Made Legally Binding in Austria Despite Warnings Over 'Incompatible' Values
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
Beijing is moving into gold and other assets, diversifying away from the dollar
Cristiano Ronaldo Makes Surprise Stop at New Hong Kong Museum
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
×