Bloomberg: EU highly likely to fall into recession next year

In the next 12 months, the European Union (EU) may plunge into recession with a probability of 80 per cent due to the energy crisis.

The recession chances in the European region have become the highest since July 2020, according to Bloomberg.

Nevertheless, the previous surveys showed that the risk of falling into a recession wouldn't exceed 60 per cent, the Bloomberg analysts say.

They predicted that the German economy, which was hit hardest by the reduction in gas supplies from Russia, may weaken in the current quarter.

Economic activity in Europe has also been declining since July without any signs of a possible improvement in the situation.

Bloomberg added that huge inflation and difficulties in logistics and supplies led to a slowdown in economic growth.

In addition, in the upcoming winter, households and companies in Europe will have to conserve energy consumption. This, in turn, will only worsen the economy.