Fitch Ratings estimated in its newest report released on Thursday that the Eurozone is likely to enter a recession in the second half of 2022 as a consequence of the soaring prices of energy, particularly gas, and halts on the transfer of that commodity from Russia, APA reports citing Tele Trader.
Fitch projected the gross domestic product (GDP) in 2023 would decline by between 1.5 and two percentage points in the euro area, three percentage points in Germany, and 2.5 percentage points in Italy. "Economic vulnerabilities to a shut-off of Russian pipeline gas supplies are still very high despite recent aggressive efforts to diversify import sources, particularly into liquefied natural gas," the report said, intensifying thus the estimate Fitch made in June.
On the other hand, the report predicted that "[t]he economic impact of the gas shock should fade sharply in 2024 as production structures and consumption patterns adjust and new gas import infrastructure facilities come on stream."
Follow us on Telegram
t.me/apanewsaz
Follow us on Instagram
Follow us on Facebook
Follow us on Twitter
