EY: A mild recession, but a sluggish recovery awaits businesses

Based on EY’s forecast, GDP growth in the euro zone will drop from 3.3 percent last year to zero this year, and will reach 2 percent by 2024. A decrease of 0.7 percent is expected between October 2022 and March 2023, which predicts a short and mild economic downturn in the zone. Behind the more subdued weakening are the strong labor market, the significant drop in raw material prices, and the governments’ economic and consumer protection measures. However, a milder recession will be followed by only a slow recovery as higher energy prices continue to hold back growth. Hungary, the Czech Republic, Romania, Croatia, Italy and Germany feel the effects of this the most.