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To date, European countries have managed to avoid a recession – a slowdown in economic growth and a decline in most financial indicators. But there are still factors due to which the well-being of EU countries could suffer in 2023, Pavel Samiev, CEO of the analysis agency BusinessDrom, told Lente.ru.
According to the expert, Europe managed to avoid a fall in gross domestic product (GDP) for more than two quarters, although many points point to a recession. These are a sharp rise in energy prices, an embargo on products from Russia and a drop in demand for European goods. But a very mild winter has helped EU countries maintain a balance in the energy sector. And the expected deterioration did not occur.
However, as Pavel Samiev notes, Europe’s problems of the past year have not gone away. In addition, new factors have added to the negative factors, which could already lead to a recession during this year.
- We are witnessing a surge in inflation and unemployment. The energy balance will continue to deteriorate and energy prices will continue to rise. Business competitiveness will decline even further, which could potentially lead to a critical drop in production and a fall in GDP, the analyst noted.
He added that if a recession was avoided last year, that does not mean it will be the same this year. The probability of a recession is still very high for Europe.
Previously, the “Main Regional” reported that northern Europe: Germany, the Netherlands, Poland and Austria at the end of April are again forced to use the reserves of gas storage facilities.
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