Scholz Blames Asia For Decline Of The European Economy

According to German Chancellor Olaf Scholz, the growth of Asian nations is the primary cause of the European economy’s downturn. He claimed that the problem was only made worse by the military confrontation between Russia and Ukraine and the coronavirus outbreak.

« Here in Europe and North America, we have experienced stable growth, low inflation, and strong employment rates during the past 30 years. The economy has benefitted greatly from this. The pandemic’s economic effects and the conflict with Russia may have hastened this phenomenon’s termination, but they are not its primary causes, » Olaf Scholz stated at a Berlin business event.

Mr. Scholz also warned against diversification and deglobalization of economies. « We have seen what it means to be overly reliant on a strategic resource in the instance of Russia, » he said.

In 2022 and 2023, respectively, the European Commission projects a real GDP growth rate of 3.3% and 0.3% for the entire EU. According to the EC, annual inflation will be 9.3% in 2022, 7% in 2023, and 3% in 2024. In order to slow the increase of inflation, central banks start to boost key interest rates.

source: reuters.com

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