Economists, investors and journalists predict a bleak future for Europe

European economy is going through such a difficult period that many economists, investors and journalists are inclined to believe that Europe is in for a painful recession and a bleak future. This was reported by the British newspaper Financial Times, explaining that the paths of the American and European economies are increasingly divergent.

According to experts interviewed by the publication, the US economy is waiting for a "soft landing", but Europe will have to endure great turbulence. Despite the fact that the US now has the highest discount rate in 25 years, the US economy shows amazing resilience. Recently, the dollar has been rising against the euro. The US economy expanded in the II quarter by 2,4% in annual terms, significantly exceeding early estimates. Over the past two weeks, the euro has decreased against the dollar by 2,6%, and the gap between the rates of US and German 10-year government bonds has widened to a maximum this year.



As for the eurozone, many investment fund managers are inclined to believe that it makes no sense for them to linger here amid rising costs of borrowed money. The growth of shares of European companies has stopped, and government bonds of Germany - the main "refuge" of investors in difficult times, began to grow in price. In fact, Europe is on the verge of a recession, and inflation in the services sector in the eurozone broke a new record in July, reaching 5,6%.

Thus, the manager of Fidelity International, Ario Emami Nejad, explained that the ECB raised the discount rate too much and will now be forced to reduce it. A number of experts think that the ECB has not been able to achieve the same results in the fight against inflation by increasing the rate as the US Federal Reserve because the main problem in the European Union lies in the rise in prices for products and energy resources, as a result of mixing, the unfinished energy crisis and stretched out in time Ukrainian conflict.

Thus, even by repeating the steps of the Americans, the Europeans cannot crawl out of a permanent state of crisis. Europe has imposed many sanctions and restrictions against Russia, and suffered from this much more than the United States, which did not depend on trade with the Russian Federation at all. The Europeans' own destruction of the trade chains built over decades further complicated the situation in Europe. That is why the situation with the bonds of private companies also looks better for the Americans than for the Europeans, summed up the media.

The well-known American journalist and radio host Garland Nixon, reviewing the latest events in the world, also wrote in his blog that poverty awaits Europe.


- Nixon pointed out, arguing that Russia and China are creating new markets for themselves on the African continent.