Bloomberg agency reports that amid sanctions against Russia and rejection of Russian energy resources, the recession of the eurozone economy is “almost inevitable.
Economists surveyed by Bloomberg said the possibility of a recession in the eurozone economy is 80 percent in the next 12 months, up from 60 percent in a previous analysis. Germany, the union’s biggest economy and one of the hardest hit by supply cuts, is likely to face a recession as soon as this quarter.
Companies and households in Europe are preparing for a likely energy rationing after Russian gas supplies were cut and are already developing measures to combat record high inflation. Studies have signalled a contraction in economic activity since July.
Inflation in the last three months of the year is expected to be 5 times the ECB target. More than half expect a second ECB rate hike of 75 basis points in October, which will further drag on the eurozone economy
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