The trading week ended on a down note for German equities, with the blue-chip DAX index dropping by 0.27% at the close on Friday. The European Commission released its autumn 2024 economic forecast, highlighting downward revisions to the region's economic growth amid rising risks and uncertainties on both local and global scales.
For the year 2024, the European Union's gross domestic product is projected to grow at a rate of 0.9%, a reduction from the previous estimate of 1% set during the spring forecast. Meanwhile, growth for the euro area is estimated at 0.8% in 2024. Economic growth is anticipated to gain momentum for both the EU and the eurozone in the following two years as disinflation trends continue to develop.
"The European economy is slowly recovering. As inflation continues to ease and private consumption and investment growth pick up, with unemployment at record lows, growth is set to gradually accelerate over the next two years," remarked Commissioner for Economy Paolo Gentiloni. "Nevertheless, structural challenges and geopolitical uncertainty remain as significant concerns for our future prospects.
Member States will need to navigate a delicate balance between reducing debt levels and fostering growth, essentially supported by the new economic governance framework alongside the ongoing implementation of NextGenerationEU," Gentiloni noted. Focusing specifically on Germany, information from the Federal Statistical Office revealed that the annual decrease in wholesale prices mellowed to 0.8% in October, easing from a 1.6% drop in September.
Destatis indicated that the latest figures were primarily influenced by reduced prices in mineral oil products. In corporate news, the UK's Medicines and Healthcare products Regulatory Agency granted authorization for Novavax's (NVV1.F) COVID-19 vaccine, which has been updated to effectively target the omicron JN.1 variant..