It’s a recession!

June 09, 2023 Ernest Partners

📢 Finally the word is out, it’s a recession! Two consecutive quarters a net decrease of 0.1% in the eurozone.

What does this tell us:
▪ The largest EU economic motor, Germany, is slowing down
▪ Interest increases of ECB are impacting the real economy
▪ Inflation leads to reduced or at least prioritized consumption from consumers
▪ Companies reiterate their investment plans based on higher price levels en higher financing costs
 
But at the same time employment perspectives remain relatively good. In this context, Belgium does a little bit better than the European average with a GDP growth of 0,5% in Q1/2023, partly thanks to the automatic indexation of salaries.
 
🤔 What’s your takeaway of this economic news? Is your business affected? Please leave a comment to give your opinion?