Europe may avoid a recession. Who would have thunk it 6 months ago?
“Europe’s Mild Winter Cushions Economic Blow of Ukraine War”
“Lower energy prices, government support mean Europe could face the shallowest of recessions—if its economy shrinks at all”
“Russia’s economic war with the West looks set to claim a much smaller toll on Europe than the brutal recession many economists warned about just months ago, due to falling energy prices and government intervention to buttress the continent’s economy.
A mild winter so far, efforts by businesses and households to cut energy consumption, successful moves by governments to find new natural-gas suppliers and hundreds of billions of euros in fiscal support mean Europe’s recession is likely to be shallow and brief—if it happens at all—according to fresh data and estimates.
And with energy costs now falling back toward levels seen before Moscow’s attack on Ukraine, the cost of the subsidies and tax relief deployed by European capitals to soften the blow are set to shrink, reducing their impact on public finances.”
“Russia’s economic war with the West looks set to claim a much smaller toll on Europe than the brutal recession many economists warned about just months ago”
Russia’s economy and Government budget however, are still heading to take big hits.