9/28, 7:58 PM (Source: TeleTrader)
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Gentiloni: Recession can no longer be ruled out

European Commissioner for Economy Paolo Gentiloni said on Wednesday that economic indicators are pointing to a slowdown and a recession next year "can no longer be ruled out."

"The combination of high energy prices, high inflation (even if for different reasons), monetary tightening and extraordinary uncertainty are putting a damper on growth," Gentiloni stated. "Both the EU and the US will see positive growth for the year 2022 as a whole. But all the signs are pointing to a slowdown underway, such that a recession can no longer be ruled out," he added.

Gentiloni noted that Russia's war in Ukraine and "its consequences" are "weighing on economic prospects" in Europe and the United States but insisted the West's response to Moscow's actions is working. "The sanctions are steadily eating away at Russia's economy, which is set to shrink markedly both this year and next," the official stated.

Baha Breaking News (BBN) / NP