According to an analyst, 2008 growth of European economy to greatly slow down and depreciation rise. The analyst believes that the economy could fall into a stagflation situation.

All European countries have reported a similar situation, economies slowing down and depreciation heating up.

The analyst from Dresdner Kleinwort said that European economies are falling into a stagflation situation. Although Chinese and Asian economic growth has alleviated the US economic downward slide, European nations still cannot avoid a decreasing growth rate and prices of goods remaining high.

Although Europe is facing stagflation depreciation, the analyst thinks it is impossible that it will lead to a serious situation like the 1970s’ oil crisis but that it will still cause market anxiety.

Due to oil and food price increases, France, Spain, and Italy’s CPI soared in the last month. France recorded its highest rate in three and half years.