On Monday, Moody’s Investors Service announced that the gross domestic product of Germany, Italy and Slovakia will also fall below the pre-pandemic level in 2023.
The company also projected a negative outlook for the entire eurozone, according to which the region is at moderate risk of recession this year.
“Support measures at the national and EU levels and mitigating disruptions to global supply chains can offset some of the negative impacts to a certain extent,” Heiko Peters, Moody’s vice president and a senior analyst for the company, added Monday.
However, according to our projections, 60 percent of sovereign states in the eurozone do so goes into stagnation.
Germany according to the preliminary estimate on Friday Although it avoided the decline in the fourth quarter that analysts had previously predicted, the bleak outlook cited by Moody’s suggests this surprisingly resilient performance will not last.
Moody’s added that if stagflation starts, that is, if a country or the entire region falls into a technical recession while the level of inflation continues to rise, this could have “severe” consequences for the credit rating of some southern European countries.
