Economics
Euro-Zone Is Already in Recession on Energy Squeeze, UBS Says
- ‘Shallow’ contraction will last until the end of 2022
- Morgan Stanley predicts deeper slump starting fourth quarter
Lights in the early evening in Baden Baden, Germany.
Photographer: Ben Kilb/BloombergThis article is for subscribers only.
The euro area has already entered a “shallow” recession that’s been triggered by surging energy prices and will last through year-end, according to economists at UBS Group AG.
The 19-nation economy will shrink by 0.1% in the third quarter and 0.2% in the fourth, the analysts predicted Thursday in a report to clients. Despite that, they upgraded their full-year outlook after a strong performance in the three months through June. The growth forecast for 2023 was cut to 0.8% from 1.2%.