Euro Zone Can Escape With a Shallow Recession This Winter
- Bloomberg Economics sees small contraction over two quarters
- Forecast hinges on government support during energy crisis
Dawn fog at an oil refinery in Grandpuits-Bailly-Carrois, France.
Photographer: Cyril Marcilhacy/BloombergThis article is for subscribers only.
A euro-area recession is coming this winter as inflation peaks, but the bloc can escape with a shallow downturn if consumers are shielded from the worst of the energy crisis, according to Bloomberg Economics.
Output is seen shrinking 0.3% in the fourth quarter and 0.2% in the following one, assuming governments offer support to households and businesses and natural gas costs ease next year.