Bloomberg analysts note that major central banks and EU policymakers avoid using the term “recession” in their statements. However, while they are beating around the bush, it does not help solve the current problems. The European Union’s economy is under pressure. On the one hand, inflation threatens to turn into a recession or stagflation. On the other hand, the negative consequences of the Russian-Ukrainian conflict continue to pose dangers. Bloomberg reports that the word “recession” is out of European policymakers’ vocabulary. Meanwhile, a threat of an actual recession persists. In addition, major investment companies and leading investors confirm the risks of an economic downturn. According to the agency, major financial institutions such as JPMorgan Chase, HSBC, and Goldman Sachs have already warned about hard times for the EU economy. At the same time, continued soaring inflation, the Russian-Ukrainian conflict, and the ongoing energy crisis in the eurozone exacerbate the situation. Bloomberg says that European companies are signaling distress amid record inflation and a stubborn supply squeeze, aggravated by strict lockdowns in China. Investors fear that external and internal pressure will push the fragile European economy into recession, Bloomberg concludes.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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