Eurozone Faces Mounting Recession Risk – Bloomberg The risk of recession in the euro area is growing, economists polled by Bloomberg warned on Tuesday, citing the shortage of natural gas, as well as inflation – which remains at record levels – as the main factors.
The likelihood of a significant contraction has reportedly surged to 45% from 30% in the previous survey, and 20% before the launch of the Russian military operation in Ukraine, which led to sanctions on Moscow and a reduction in Russian energy flows, mostly to Germany.
The analysts still see Eurozone inflation peaking in the current quarter. Inflation forecasts were raised from the previous poll, though price growth is still expected to slow to the European Central Bank’s 2% target in 2024.
