Europe's Economy Slows Sharply as Recession Risks Grow

[mahatmakanejeeves]

Source: The Wall Street Journal.

ECONOMY

Europe’s Economy Slows Sharply as Recession Risks Grow

Business surveys point to decline in eurozone manufacturing output and weaker services growth as price rises hit households

By Paul Hannon
https://twitter.com/PaulHannon29
[e-mail]
Updated June 23, 2022 8:05 am ET

Europe’s economy slowed sharply in June as surging prices of energy and food weakened demand for other goods and services, business surveys showed, increasing the risk that some countries will slide into recession over coming months.

The new data underlines how dark the outlook for Europe’s economy has become as Russia’s war in Ukraine drags on, with high inflation spreading across the board, the prospect of rising interest rates and a possible energy shortage this winter, not to mention persistent supply-chain bottlenecks across sectors.

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Read more: https://www.wsj.com/articles/europes-economy-slows-sharply-as-recession-risks-grow-11655979342

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Europe’s economy slowed sharply in June as surging prices of energy and food weakened demand for other goods and services, business surveys showed

wsj.com
Europe’s Economy Slows Sharply as Recession Risks Grow
The region's economy suffered in June as surging prices of energy and food weakened demand for other goods and services, business surveys showed.

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[IronLionZion]

1. GOP will blame this on Dems too

[elias7]

2. And on Biden

[IronLionZion]

4. Biden jacked up oil and food prices worldwide

because he's so mean like that

[RobinA]

5. He IS Mean

And Godlike in his power. I just spent two weeks in Norway and he's got all the exact same problems going on there. Not sure how he did it but the rising gas prices, rising everything else prices, hotels with no staff, freak outs at the airport, cut hours due to no help... The man is unstoppable worldwide!

[IronLionZion]

6. It's impressive how he causes the same problems all over the world like that

My parents were in Canada last week and same issues there. Staffing shortages and canceled flights, high fuel prices (since he hates pipelines).

[BumRushDaShow]

3. Some of this is still pandemic induced

which started WAY before Russia invaded Ukraine. Many nations around the world were dealing with their own "single points of failure" (i.e., Chinese goods) and were funding industries to keep afloat.

The pandemic is still here, but at least with some type of mitigation/treatment available, so trying to unwind from those extraordinary measures ended up clashing with Russia's invasion and what was essentially yet another "single point of failure" for Europe (i.e., Russian energy).

If anything, these 2 major world events provide a HUGE "Lessons Learned" opportunity to start reformulating stop-gaps.

I just thought of a somewhat similar analogy where after the market collapse of 2007, new measures were put in place to periodically "stress test the system", and similar may need to happen for situations like this in the future.