EU Economy Skids into Q4

The war in Ukraine and the global slowdown are taking a toll on European economies.

1137
Open as PDF

European Union Economic Update | Q3-2022
(click to enlarge)

The European Union continued its economic slowdown in the third quarter. High inflation, an energy crisis, a global slowdown and tighter financing conditions were drags on EU growth. The war in Ukraine continues to take its toll on regional economies. High prices depressed consumer and business confidence and hampered energy-intensive industries. Emergency fiscal measures have offset some of the effects but at the cost of higher debt.

The health of the labor market remains a positive surprise, with unemployment falling to new lows. The European Central Bank expects a mild recession beginning next year, so a drop in employment is probably imminent. But given Europe’s persistent labor shortages, a growing problem since the pandemic, unemployment likely will not increase too much.

Geopolitical Futures (GPF) was founded in 2015 by George Friedman, international strategist and author of The Storm Before the Calm and The Next 100 Years. GPF is non-ideological, analyzes the world and forecasts the future using geopolitics: political, economic, military and geographic dimensions at the foundation of a nation.