The Wall Street Bank had forecast a contraction of 0.1% for the region in November. A technical recession is generally defined as two consecutive quarters of contraction in the Gross Domestic Product (GDP).
It is expected that the eurozone inflation to be around 3.25% by end-2023 compared to 4.50% forecast previously, economists said.
In December, the growth of consumer prices in the euro area slowed to 9.2% from 10.1% the previous monthshowed the data of Eurostat In the past week.
It is also anticipated that subjacent inflation in the region is reduced to 3.3% by the end of the year as commodity prices cool, but a continued upward pressure on services inflation due to the increase in labor costsGoldman said.
Given the “persistent” nature of inflationGoldman expects the European Central Bank stay aggressive and perform interest rate hikes of 50 basis points in February Y march before reducing them to 25 bp in May for a terminal rate of 3.25%.
For him United Kingdom, Goldman forecasts a contraction of less than 0.7% of GDPcompared to a previous expectation of a contraction of 1%, thanks to the reduction in wholesale gas prices.
Because the UK job market Still Overheated, Bank of the United States Sees Another 100bp of Rate Hikes from the Bank of England.
This week Goldman Sachs announced that it will lay off 3,200 employees from different areas during the year. This was anticipated by its executive director, david solomon, who explained that the slowdown in various business lines, an expensive foray into consumer banking and an uncertain outlook for markets and the economy, they are prompting the bank to reduce its costs.
Source: Ambito
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