(MENAFN) According to a Morgan Stanley analysis released on Wednesday as well as reviewed by Bloomberg, the euro area is going to enter a slight recession in the fourth quarter of the current year due to decreased energy supplies from Russia.
Based on the prediction, the economy is going to decrease for two quarters before beginning to recover again in the second quarter of upcoming year, led by a rise in asset.
Due to mounting concerns about the limited Russian natural gas supply, declining consumer as well as corporate confidence as well as rising costs, the prognosis has been weakened. On the other hand, the economists at Morgan Stanley wrote, “the risks around the outlook have intensified.”
They claimed that the European Central Bank may increase its deposit rate notwithstanding the slowing in the economy at each meeting the current year so that it is going to reach 0.75 percent in December.
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