Business news | Already in recession is the Eurozone, according to UBS

According to bank analysts, the energy issue is to blame for the economic slowdown.

According to economists at UBS Group, the euro area has already experienced a "shallow" recession that will persist until the end of the year. They ascribed the decrease to pressure from rising energy prices.

According to reports, the third quarter will see a 0.1% decline and, in the fourth, a 0.2% decline in the Eurozone's economy. The outlook for the entire year has been improved, but the growth prediction for 2023 has been decreased from 1.2% to 0.8%.

"We now expect the Eurozone to face a technical recession," experts said, "in light of further considerable energy-price hikes, which indicate increased pressure on household consumption and fixed investment."

According to UBS, their projection assumed that although there wouldn't be any significant shortages, natural gas prices would continue to rise. Should

The Morgan Stanley economists on Thursday predicted a more severe decline in the euro area beginning in the fourth quarter, echoing the warning.

The energy crisis will have a longer-lasting effect on the following year, according to the analysts, who predict that higher costs and supply uncertainties will linger far into the winter of 2023–2024. But not all is bad; we continue to believe that a recovery will come after this sluggish period, propelled by an increase in both private and state investment.

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