Eurozone’s economic growth may drop to zero

Brussels/Berlin/Stockholm: Present economic growth of Europe is much lower than expected, primarily due to high inflation on account of fuel shortage. Although the European Central bank has hiked the interest rate to control inflation, the rise in inflation is expected to continue, warns ECB President Christine Lagarde. There is a strong possibility that Germany and Sweden, considered to be the engine of Europe’s economy, may face recession by next year.

Christine Lagarde, President of ECB, the central bank of the European Union (EU), while speaking to the committee of economic and monetary affairs of the EU warned that inflation in coming times would be much higher than expected. Lagarde blamed the current inflationary pressure and economic slowdown on the ongoing Russia– Ukraine conflict.

The Russia- Ukraine war has disrupted the energy supplies to European countries. Germany and other countries are facing economic challenges. The Organisation for Economic Cooperation and Development (OECD) has forecasted Germany’s economy to shrink by 0.7%, whereas due to inflation, Sweden would face recession in the first half of next year.

There are claims that Slovakia’s economy would collapse. While the Czech Republic is facing a similar fate due to rising inflation. Citizens have taken to the streets, raising slogans against the government. It is claimed that most countries in Europe would more or less face a similar situation.