Industrial production in the Eurozone fell by 2.2%, in the EU – by 2.4% compared to July 2022

Seasonally adjusted industrial production in the eurozone and the EU in July 2023 decreased by 1.1% compared to the previous month. This is evidenced by Eurostat’s data.

Compared to June 2022, industrial production in the Eurozone fell by 2.2%, in the EU – by 2.4%.

Among the EU member states, the highest monthly growth of industrial production in July was recorded in Sweden (+5.1%), Malta (+3.4%) and Hungary (+2.9%). The largest decrease was observed in Denmark (-9.1%), Ireland (-6.6%) and Lithuania (-4.4%).

On an annual basis, according to Eurostat, in July 2023 industrial production increased the most in Denmark (+5.7%), France (+2.8%) and Malta (+2.3%). At the same time, Bulgaria (-11.5%), Estonia (-9.5%) and Latvia (-8.6%) showed the largest drop in industrial production compared to June 2022.

Energy production in the Eurozone in July 2023 increased by 1.6% m/m, in annual terms it fell by 5.7%. In the EU, energy production in this period increased by 1.5% m/m, compared to July 2022 it fell by 7.4%.

As GMK Center reported earlier, inflation in the Eurozone in August 2023 increased by 5.3% y/y, remaining at the level of July. In June 2023 this indicator was 5.5%, in May – 6.1%, and in April – 7%.

Also, the European Commission worsened the prognosis growth in the eurozone economy for 2023 and 2024, as inflation is still too high, consumer spending declines and Germany, the region’s largest economy, slips into recession. It is expected that the GDP of the Eurozone will grow by 0.8% in 2023 and by 1.3% in 2024. These figures are lower than the May forecasts of 1.1% and 1.6%, respectively.