Europe will spiral into a severe recession as the energy crisis hikes inflation and weighs on GDP, BlackRock says

Blackrock has sounded the familiar alarm about the recession heading for Europe.

“The energy crunch will drive a recession in Europe, as we’ve argued since March. The crisis has worsened since then as Russia has halted gas supplies,” analysts warned, pointing to the indefinite cutoff of flows from Russia’s Nord Stream 1 pipeline. 

Europe will spiral into a severe recession, as the shortage in energy supplies is set to spike inflation even higher and weigh heavily on Europe’s GDP, BlackRock said in a note on Monday.