Inflation hits new record in Europe

I can assure you, given our focus on agriculture, restored mining, power industry, and manufacturing are working well plus we have opened up the overseas workers, we have increased the quality of our overseas workers, I don't think we'll have a recession, your honour," he added.

CA Majority Leader and Camarines

Sur Representative Luis Raymund Villafuerte, who raised the question during the hearing, said while the projected economic growth is "very good," the country still needs to consider the global economy. Diokno, in response, explained that the Philippine economy is "less dependent" on external factors.

The 19 nations that use the euro currency saw record-high inflation, which was fueled by escalating natural gas and energy costs brought on by Russia's conflict in Ukraine. Economic growth also slowed, largely as a result of those rising costs stifling Europeans' ability to spend, ahead of what many worry is an impending recession.

According to data released by Eurostat, the statistics office of the European Union, annual inflation reached 10.7% in October. That represents an increase from 9.9% in September and is the highest level recorded since figures for the eurozone were first compiled in 1997.

Following the invasion of Ukraine, natural gas prices surged as Russia reduced pipeline supply to a fraction of what they had been before the conflict. To continue producing energy and heating homes, Europe has been forced to turn on costly liquefied gas shipments that arrive by ship from the US and Qatar.

While liquid gas was successful in filling Europe's winter storage, several industrial items, like steel and fertilizer, are now either too expensive to produce or are just not profitable.

Annual inflation reached 10.7% in October. That represents an increase from 9.9% in September and is the highest level recorded since figures for the eurozone were first compiled in 1997

Economy

US economy grew by 2.6%

Despite inflation that has been hovering near a 40-year high and significantly rising interest rates, the US economy recovered from July through September after contracting during the first half of the year. However, rather than being an indication of a better future, the performance was probably just a respite before the anticipated recession of next year. A more favourable trade balance, small increases in consumer and corporate expenditure, and an offset to a further decline in housing building and weaker company stockpiling, all contributed to the strong performance.

UK economy shrank again

According to the latest statistics, the UK economy fell more than initially estimated in the three months leading up to September. The Office for National Statistics (ONS) stated that corporate investment fared worse than anticipated, causing the GDP to decrease by 0.3% as opposed to the 0.2% previously estimated. Additionally, growth estimates for the first half of 2022 have been reduced. As rising costs hamper growth, the UK is predicted to enter a recession in the latter three months of the year.

When a nation's economy contracts for two consecutive quarters of three months, that nation is said to be in a recession. Typically, as business profits decline, wages decline, and unemployment grows, the government has less tax revenue to spend on public services.

Darren Morgan, director of economic statistics at the ONS, said, "Our revised figures show the economy performed slightly less well over the last year than we previously estimated, with manufacturing notably weaker". He added that household incomes, when accounting for rising prices, continued to fall, and household spending fell for the first time since the final COVID-19 lockdown in the spring of 2021. The GDP is downgraded from 0.8% to 0.4%.

The value of all products and services produced in the US increased at a seasonally adjusted annual rate of 2.6% in the third quarter, according to data released by the Commerce Department. Bloomberg had predicted an increase in output of 2.3%. The increase came after declines of 1.6% and 0.6% in the first and second quarters, respectively, which were primarily brought on by changes in corporate stockpiling and trade, two volatile areas that don't normally reflect the state of the economy.

The NBFR considers a wider variety of economic activities, such as employment, retail sales, and industrial production, before establishing when a downturn begins and ends.

Analysis