Economists have long been warning about a possible recession in Europe. However, oftentimes, their forecasts fail to meet reality.
Thus, Russian analysts predicted that Europe would tip into a recession just after it imposed sanctions. At the moment, the European economic situation is quite challenging but it is not a catastrophe. Not so long ago, President of the World Bank Group David Malpass shared his assumptions. To prove that the economic turndown is inevitable, he presented several arguments. First of all, he emphasized the weakness of the euro and extremely high inflation. These are fundamental factors that are boosting the risk of recession. The World Bank sees risks of restrained growth in the European economy in the long term.
Earlier, Deutsche Bank also provided forecasts for European economic expansion. Deutsche Bank had to drastically revise its outlook revealed in July since the overall situation is likely to be worse than expected. “The baseline call we made in July for a mild recession this winter is now too benign,” Deutsche Bank's chief economist for Europe, Mark Wall said.
