© Reuters. Financial Times: Eurozone economy heads into recession next year
The euro zone economy is poised for recession next year as high inflation and the possibility of an energy deficit will negatively affect output, according to the results of a poll of economists conducted by the Financial Times.
Nearly 90% of 37 economists surveyed believed the region was already in a recession, and a majority expected GDP to contract over the next full year.
“Gas markets in Europe pose a major risk and further supply disruptions or a particularly cold winter could lead to renewed tensions and higher prices, leading to another adjustment cycle and destroying demand,” said Chiara Zangarelli, Morgan Stanley economist.
Most economists said they believed the worst in Europe was over with the energy crisis triggered by Russia’s invasion of Ukraine.
