Eurozone investor confidence has fallen this month to its lowest level since May 2020, signaling an “inevitable” recession in the 19-nation currency bloc, a survey showed on Monday.
The Sentix index for the euro zone fell to -26.4 from -15.8 in June. A Reuters poll pointed to a reading of -19.9 in July.
“The energy crisis is leading to considerable economic distortions,” Manfred Huebner, managing director of Sentix, said in a statement.
“In all respects, the dynamic is reminiscent of the crisis of 2008, and what was then the collapse of the financial system is now the danger of the collapse of the European energy supply,” he added.
Germany, Europe’s biggest economy, last month moved into the second phase of its three-tier gas emergency plan after Russia cut deliveries through the Nord Stream 1 pipeline.
Sentix’s current situation in the euro zone sub-index dropped to its lowest point since March 2021, while the expectations sub-index was at its weakest level since December 2008.
“A scenario like the current one justifies the expectation that a recession is inevitable,” added Huebner.
Source: CNN Brasil
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