The risk of recession: is Ireland headed for a new downturn?

All barometers point to a coming recession in Europe, with a number of key indicators ‘flashing red’. Ireland, however, is heading into this period of uncertainty on a stronger economic footing than it was in 2008

Downturn: ‘Consumer confidence is headed for rock bottom due to the record energy prices and very high inflation’. Picture: Fergal Phillips

Earlier this month, Søren Skou warned that international trade was beginning to slow. The chief executive of Maersk, the world’s second-largest shipping company and a bellwether for the global economy, was among the first to warn of a coming recession.

“We see a recession looming . . . every indicator we are looking at is flashing dark red,” Skou warned. The head of the Danish shipping giant was not alone in his prediction.

In a recent interview with the Business Post, Kasper Elmgreen, head of equities at Amundi, Europe’s largest asset manager, said the European economy was decelerating at a rapid pace as consumers reined in spending in the face of soaring inflation and rising interest rates.