The summer has seen a sharp deterioration in prospects for the the euro area economy. The cost of living crisis is hitting consumers’ pockets hard. Europe’s manufacturing sector is contracting while momentum in the services sector is slowing. To make matters worse, wholesale energy prices have soared to all-time highs in Europe as Russia throttles gas supplies.
Listen to this Talking heads podcast with Anaïs Boussie, our senior European economist as she discusses the outlook and perspectives for 2023 and 2024. She outlines the policy measures she expects the ECB and national governments to employ in coping with the consequences of the energy crisis and weak economic growth.
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