Daily Management Review

ECB gets ready for possible recession in eurozone


ECB: If gas supplies from Russia are cut off, the economy of the eurozone may enter a recession.

According to Luis de Guindos, vice president of the European Central Bank, if gas deliveries from Russia stop and European industry is forced to adjust to energy shortages, the euro zone economy could enter a recession.

His alternate scenario shows that "in the event of such a development, a recession would occur not only in Germany, but also in the entire eurozone."

The baseline scenario for the ECB anticipates that the eurozone economy will expand this and next years, albeit somewhat more slowly, while a pessimistic scenario would result in the currency union going into recession the following year.

source: ec.europa.eu