Euro zone's economic growth to be hit by high oil price

Euro zone’s economic growth to be hit by high oil price

Economic growth in the Euro zone will slow down in the third quarter on the back of high oil prices and a slump in the US Dollar. Economists expect Euro zone's economic growth to slow to 0.4% in the third quarter from 0.5% in the second quarter and 0.7% in the first quarter. Third quarter results will reportedly show a dramatic slowdown compared to first quarter expansion. The European Union statistics office Eurostat will announce the estimated third quarter growth on Friday with the growth figures of France, Germany, Italy and Netherlands. It is pointed out that Euro zone can not achieve a traditional cyclical recovery because of external constraints like the strong Euro and high oil prices, and internal constraints like government deficits and corporate restructuring.