world-economy

Euro-Zone Economic Contraction Accelerates Amid Energy Crisis

Business activity across the euro zone contracted at the sharpest rate in two and a half years, signaling mounting economic headwinds. Energy costs have surged, driving the decline spreading across the region's largest economies. France experienced its steepest business contraction since 2020, with the jobless rate climbing above 8 percent for the first time since 2021. Germany's private sector contracted for a second consecutive month. Elevated energy prices are squeezing both consumer spending and corporate margins. Global pressures are also evident: US import and export prices surged in April by the most in four years, driven by fuel-cost volatility. The synchronized slowdown underscores growing concerns about stagflationary pressures taking hold across major developed economies.