Almost six months after Vladimir Putin ordered Russian troops into Ukraine, the extent of the damage to the European economy is becoming clear. The red lights of recession are flashing.
The eurozone’s big four economies – Germany, France, Italy and Spain – have all had their growth forecasts for 2023 downgraded by the International Monetary Fund, as a combination of the war and higher interest rates put a brake on activity.
In the UK, inflation is above 10% for the first time in 40 years as households struggle with rising energy bills. The Bank of England forecasts inflation will peak above 13% in autumn after a fresh increase in energy costs, while the economy will fall into a lengthy recession.
While Britain is contending with additional pressures from Brexit, the impact of soaring energy prices, supply chain disruption, shortages of workers and drought are also hitting the rest of Europe. Analysts at the Economist Intelligence…
