This is down from 0.8% in the previous quarter but slightly higher than expected by ECB staff in September. Looking forward, according to ECB staff forecasts from September, growth is projected to decline further in the fourth quarter of 2022, then come to a standstill, and start recovering in the second quarter of 2023.
Incoming soft data since September suggest that the economic outlook has deteriorated further and that the risk of a recession has increased. So, what is weighing down on growth? There are at least four factors: high inflation, high uncertainty, rising interest rates, and the fading effects of the reopening from the Great Lockdown.