European Central Bank President Christine Lagarde
Politico: ECB’s Lagarde expects technical recession this winter
Central Bank estimates currently predict euro area growth to remain positive in 2023, albeit low at 0.9 percent. The European Central Bank expects the euro area economy to contract in the last quarter of this year and in the first quarter next year, its president said Monday.
That fits the definition of a technical recession, which is two consecutive quarters of negative growth.
"It is difficult to predict what the real outcome will be in 2023 but it will certainly be a difficult year of which the first quarter will most likely be negative, as we believe the last quarter of 2022 will likely be negative as well," ECB President Christine Lagarde told the Economic and Monetary Affairs Committee of the European Parliament.
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Update #1: Europe's outlook 'darkening,' ECB head hedges on recession (AP)
Update #2: EU central bank warns ‘outlook is darkening’ (RT)
WNU Editor: ECB President Christine Lagarde blames Russia for this economic crisis, even though it is the EU that imposed sanctions over Russia's invasion of Ukraine thereby precipitating the current economic crisis not the otherway around.
ECB President Christine Lagarde is also predicting a short technical recession.
I disagree.
Europe's access to cheap and reliable energy from Russia has now come to an end. What this means is that Europe's business model, based on cheap energy, is now broken.
For the people in Europe this means expensive energy alternatives and supplies, the closure of businesses that are dependent on reliable and affordable energy, and the departure of businesses to other more affordable energy producing countries.
Europe is not facing a short recession this winter. Europe is already in a recession, and it is going to get worse.
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