Economy

Eurozone to suffer first recession since Covid-19, analysts predict

However, analysts have forecast that the economy is at the start of an upswing

Euro area’s weakness is led by Germany, Europe’s largest economy, which is struggling to shake off its manufacturing malaise. Picture: Getty

The eurozone will succumb to its first recession since the pandemic, with the economy shrinking for a second straight quarter in the final months of the year, according to a Bloomberg poll of analysts.

The 0.1 per cent contraction now predicted between September and December compares with the previous survey’s projection for output to remain unchanged. A mild recovery is seen at the beginning of 2024.

“We doubt that we’re at the start of an ...