German Deutsche Bank economists predict long and deep recession in Europe
The previous forecast of a mild recession in Europe, which was previously made by Deutsche Bank strategists is no longer valid, as the energy crisis has taken a turn for the worse. Experts now expect a longer and deeper recession, RIA Novosti reports.
Leading economist at the German bank Mark Wall, quoted by Fortune edition, explained, “The baseline call we made in July for a mild recession this winter is now too benign. We now foresee a longer and deeper recession.”
According to the publication, experts expect real gross domestic product (GDP) in the Euro area to drop roughly 3 percent year-over-year between mid-2022 and mid-2023.
The publication also recalled that earlier the EU member states allocated $496bn for programmes aimed to help contain high prices. However, according to analysts, these measures are not enough to avoid an economic disaster.