FX.co ★ GDP data of France and Spain exceeded expectations, while the US shrank

Economic growth in France and Spain exceeded expectations, strengthening their positions as rising inflation and the risk of power outages threaten to slide Europe into recession.

months to June, slightly higher than the forecast of 0.2%. In Spain, GDP jumped 1.1%, almost three times the expected rate.

But challenges are still ahead because inflation in both countries hit new records.

The GDP of other eurozone countries are also coming. Analysts see a slight gain of around 0.2%.

All in all, Europe's outlook for the coming months is extremely uncertain. Although there was a slight boost in recent months, forecasts are downgraded because of energy threats, continued supply pressures and record inflation, which dampen demand and production.

The International Monetary Fund said Germany will post the worst performance among the G7 countries in 2022 due to its dependence on imported natural gas.

Once again, US GDP fell, signaling a recession. The decline in the 2nd quarter are caused by the decrease in private investment, which includes investments in residential real estate and fixed assets, and the reduction in inventories.

Ahead is the report on inflation in the eurozone, which is likely to affect markets.