Another winter, another recession. In the opinion of Danske Bank economists, it seems difficult to avoid a recession in the eurozone.
double dip recession
“Supply shocks set the stage for a prolonged period of high inflation coupled with lackluster growth. A recession seems difficult to avoid and we expect GDP to decline by 0.9% in 2023, followed by stagnation in 2024“.
“Elevated inflation pressures, coupled with the risk of unanchoring inflation expectations, will keep the ECB firmly in tightening mode. Rate cuts could come in 2024, but uncertainty remains high.”
“The greatest fragility in Europe comes from the (geo)political front, as well as from a new worsening of the energy crisis or new outbreaks of COVID-19 next winter. Upside risks to the growth outlook come from pandemic-related private savings buffers, fiscal measures and accelerating investment spending.”
“The structural reforms to address low productivity and adverse demographic trends, as well as to secure a leading position in the ecological transition racethey are still key.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
