FT: Europe Will Face Higher Unemployment And Recession In 2023
The economy of the eurozone will contract in 2019 as a result of output reductions and more unemployment brought on by rising inflation and anticipated energy shortages. The Financial Times (FT) asked 37 experts, and over 90% of them concluded that the eurozone is already in a recession and forecasted a fall in GDP for the entire coming year.
European gas markets continue to be a significant concern, according to Chiara Zangarelli, an analyst at Morgan Stanley. A cold winter or additional supply disruptions may cause anxiety to rise once more.
According to the majority of economists surveyed by the FT, Europe has survived its biggest energy crisis. At the same time, the warm autumn has made it possible to keep the storage capacity. Many experts worry that the stockpiles may run out in 2023 as a result of an unusually cold winter or even more supply cuts from Russia.
Besides, a sharp turnaround in the property market in Europe could result from a downturn in the economy coupled with much higher mortgage rates throughout the continent. The consensus forecast from economists is for a 4.7% decline in eurozone real estate prices in 2019.
In 2023, it is anticipated that the eurozone’s economy will contract by less than 0.01%. This prediction is more negative than those made by the European Commission and the European Central Bank, who anticipated that the bloc’s GDP would expand by 0.3% and 0.5%, respectively, in 2019.