In Europe, again talking about the imminent stagflation

Western experts have increasingly begun to express concerns about the risks of stagflation in the eurozone economy, when GDP slows down against the backdrop of high inflationary pressure. Such concern was expressed, in particular, by the Board of Governors of the ECB, follows from the minutes of the meeting of the regulator on the key rate in July published on August 31. “With elevated inflation forecasts and weak GDP growth forecasts, there are fears that the economy may be entering a phase of stagflation,” the document says. The last time the development of the European economy in a stagflationary scenario was identified as one of the risks for European investors a year ago, at the ECB meeting in July 2022.

Experts at Deutsche Bank also warned about the risk of stagflation in the European economy at the end of August: “The big concern is that forecasts for Europe are becoming more and more stagflationary against the background of the fact that inflation remains stable, and there are very few signs of growth.”