Bloomberg has presented a series of negative forecasts for the EU economy. Experts warn that the euro area is on the verge of a recession in tandem with stagflation. It comes as no surprise. The double whammy of soaring inflation and the hostilities in Ukraine is putting a great strain on the EU economy. Bloomberg analysts voice concern that the European Central Bank is likely to deal with a recession which could be accompanied by stagflation. In contrast to the doom and gloom in financial markets, Russian nationals have become immune to such prophecies as they have gotten used to the permanent havoc in the domestic economy.
Alarmed by gloomy forecasts, investors are revising their portfolios. Local authorities have to develop countermeasures if the worst-case scenario comes true. Besides, CEOs and entrepreneurs also fear the high risks of a looming recession. In fact, this term is strongly disliked by central banks and policymakers, the Bloomberg survey reads. Both investors and business leaders realize that the whole global economy could be a step back by the year-end, but the European economy will be especially vulnerable.
Bloomberg is on the same page with other top-rated investment companies such as JPMorgan Chase, HSBC, and Goldman Sachs. Earlier, they also predicted that a recession had been brewing up.
The threat of a downturn is a grave challenge that could derail the European economy. Persistent high inflation, the simmering crisis in Ukraine, and the snowballing energy crisis set the stage for the recession in the EU, Bloomberg pinpointed the fundamental causes.