Europe is heading for recession. How bad will it be?
Its inflation shock is coinciding with an economic downturn
Editor’s note (September 2nd 2022): On September 2nd Gazprom said that its Nord Stream 1 pipeline would not resume supplies of gas to Europe on September 3rd as originally planned.
Every single warning light is flashing red. Russia’s war on Ukraine, an uneven recovery from the covid-19 pandemic and a drought across much of the continent have conspired to create a severe energy crunch, high inflation, supply disruptions—and enormous uncertainty about Europe’s economic future. Governments are rushing to try to help the most vulnerable. Amid the nervous confusion, there is broad agreement on one thing: a recession is coming.
This article appeared in the Finance & economics section of the print edition under the headline "A narrowing path"
Finance & economics September 3rd 2022
- Europe is heading for recession. How bad will it be?
- Europe scrambles to protect consumers against dizzying energy prices
- Vast corporate profits are delaying an American recession
- China and America’s long-awaited audit deal may yet fail
- Distressed-debt investors are preparing to pounce
- The missing pandemic innovation boom
- Why investors are reaching for the astrology of finance
- Central bankers worry that a new era of high inflation is beginning
From the September 3rd 2022 edition
Discover stories from this section and more in the list of contents
Explore the editionMore from Finance & economics
The property firm that could break China’s back
If Vanke collapses, so might confidence in the state’s management of the economy
Narendra Modi’s flagship growth scheme is off to a sluggish start
Without improvements, it risks wasting trillions of rupees
Diego Maradona offers central bankers enduring lessons
Recent years ought to have reduced the importance of a skilful feint. They have not