Financial TimesFinancial Times

Energy crunch will trigger eurozone contraction in 2023, economists warn

By Martin Arnold

28 Dec 2022 · 3 min read

Editor's Note

The economic outlook for 2023 looks a tad bit grim note economists that the Financial Times spoke to. Two major reasons being high inflation and potential energy shortages next year.

The eurozone economy is set to shrink next year as high inflation and potential energy shortages drag down output and trigger a reversal in the fortunes of the labour market, according to a Financial Times poll of economists.

Almost 90 per cent of the 37 economists surveyed by the FT said they thought the single currency zone was already in recession and the majority forecast gross domestic product would contract over the whole of next year.

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