Can Europe avoid a recession?

Can Europe avoid a recession?

Source: EODHD - https://finance.yahoo.com/economy/articles/europe-avoid-recession-234211215.html
Published: Jul 24, 2026 7:42 PM

Investing.com -- Europe's economy is nearing a critical point as renewed energy inflation, slowing manufacturing activity and limited fiscal support raise the risk of a technical recession, according to BCA Research. The outlook remains finely balanced. One scenario points to two consecutive quarters of contraction, though several sources of resilience could keep growth marginally positive. The euro area entered the latest energy shock in a weaker position than in 2022. Consensus forecasts had already placed 2026 growth near 1.2% before renewed conflict around the Strait of Hormuz pushed oil and natural gas prices higher. Manufacturing activity has since softened, with the composite purchasi...

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