Recession threat amplifies delicate economic balance - News Summed Up

Recession threat amplifies delicate economic balance


Last week, Central Bank governor Gabriel Makhlouf expressed the belief it is unlikely the economy will dip into recession, despite fears of a global downturn due to the war in Ukraine, inflation and rising interest rates. At the same time, the European Central Bank is bringing an end to record low levels of interest rates to try to fend off the threat of inflation. There is no guarantee there will not be further interest rate hikes next year, which has particular implications for mortgage-holders and those hoping to buy a home. However, Finance Minister Paschal Donohoe is still warning that the 19 Eurozone countries are at risk of recession. Nonetheless, with inflation outstripping economic growth across the Eurozone, those difficulties are intensified when inflation becomes embedded in economies in the longer term.


Source: Irish Independent June 25, 2022 06:08 UTC



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