New forecast on eurozone economy: recession is expected


December 1, Fineko/ S&P Global Ratings has updated the forecast on the growth of the eurozone economy for 2022 by 4.4%, reducing it by 0.1 percentage points amid new waves of the COVID-19 pandemic.

ABC.AZ reports that the forecast for this year remained unchanged - 5.1%.

S&P Chief Economist Marion Amiot noted that the pandemic situation in Europe and other regions has destabilized again. The Agency does not see improvement in the situation and regards the new situation as an increased main risk for its macroeconomic baseline forecasts. According to S&P’s forecasts, inflation in the eurozone will slow down to 2% next year amid the reduction in the difference between supply and demand and the abolition of tax benefits. In addition, according to Agency's experts, the European Central Bank will not raise interest rates until the end of 2024.