Fitch forecasts eurozone GDP to decrease in 2023 due to gas crisis
12 Sep 2022 16:58 reported by Stanley Wang
Fitch Rating, an American credit rating agency, indicated that the suspension of natural gas supply from Russia might increase recession in the eurozone.
Compared with Fitch's global economic outlook forecasts in June 2022, Fitch's assessment showed that eurozone GDP would decrease by 1.5 to 2 percent points in 2023.
Although Europe tried to look for various import sources, Russia's stopped natural gas supply still impacted a lot.
Apart from that, higher inflation on real household incomes, uncertainty on CAPEX, and the corporation's profit margins would also impact the demand.
However, with the construction of new gas import infrastructure facilities, the economic impact of natural gas would lessen in 2024.
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