Récession en Europe : à quoi faut-il s

Recession in Europe: what to expect?

Major institutions like the International Monetary Fund (IMF) and the Federal Reserve are adamant: the world is on the verge of a recession. Has it already started in Europe and what are the forecasts for 2023? We take stock.


Europe: Has the Recession Already Started?

The economic situation in Europe is at a turning point. The Old Continent is currently experiencing the concrete consequences of the management of Covid-19, the war in Ukraine and the energy crisis. In a desperate situation, the European Central Bank raised its rates, and I could make this choice again at the end of October.

Given this, some consider that Europe is already in recession. This is the case of Jamie Dillon, CEO of JP Morgan, who explained last week:

“There are very serious reasons that could push the United States and the world: Europe is already in recession – in some kind of recession within six to nine months. »

As a reminder, a recession occurs when economic activity across all sectors in a geographic area slows sharply. With, very often, waves of layoffs and rising unemployment. According to recent predictions by the Organization for Economic Co-operation and Development (OECD), Europe will experience the most marked changes, with a growth of only 0.3% in 2023.

👉 To go further – Purchasing power and cryptocurrencies: can they help protect against inflation?

The world’s CEOs prepare for a recession in Europe

This, of course, has not escaped the attention of the leaders of major global corporations, who are preparing for a recession. According to a Conference Board report, 99% of CEOs surveyed, who came from 60 different countries, had already prepared for a recession in Europe.

A prediction shared by the OECD, which explained in its report that this winter’s temperatures – with the dependence on Russian gas – would strongly influence the extent of the coming recession. As far as the German economy is concerned, the institution even expects a drop in growth of 0.7%.

Last week, an IMF report was similarly dovish. Pierre-Olivier Gourinchas then explained:

” To sum up, the worst is yet to come. […] For many people, 2023 will look like a recession. »

👉 On the same topic – Germany on alert: Economy Minister announces recession

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Prospects and places of cryptocurrencies

So what to get out of all this? First of all, that 2023 will not be fun for all the world’s economies. But also that the central banks are taken In a cycle they can’t easily escapeand reluctantly they plan to successively raise their rates.

Against this, Will alternative assets like cryptocurrencies play their part? ? As we have seen, Bitcoin (BTC) and its consorts showed characteristic flexibility when the Covid-19 crisis hit. Crypto assets have the potential to return to the spotlight during the European economic slowdown in 2023… But only if investors see strong interest in them.

We have seen that in countries where hyperinflation reigns, particularly in South America, cryptocurrencies are naturally adopted by citizens who see interest in them to protect their savings. Will the practice also become more democratic in Europe? Next year will tell.

👉 Read also – 12% of Argentines have adopted cryptocurrencies to protect themselves from inflation

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Sources: OECD, Conference Board, IMF report

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