Macro - Country Economic Forecasts - Eurozone

Macro - Country Economic Forecasts - Eurozone

The strong upward revision to energy price expectations has led us to cut our eurozone baseline forecast to a recession this winter. We now expect eurozone GDP to enter a recession from Q3, with the bloc contracting by around 1% from peak to trough. The timing of the downturn means that growth in 2023 will suffer the largest downgrade, with our new forecast seeing GDP flat next year, down from a 0.9% expansion expected previously. We maintain our 3% forecast for 2022.

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