US losing momentum, EU on the rise: whose economy can avoid recession

While the US economy continues to slow down, the European one, on the contrary, shows moderate growth. Let's figure out what the different dynamics in the two largest economies of the world are connected with and what awaits the eurozone in the near future The two largest economies in the world - the United States and Europe - have continued to develop in different directions since the beginning of this year. While US businesses again reported a decline in activity in January, the euro area, on the contrary, saw a moderate recovery. It seems that the US economy is losing momentum more and more, while the situation in Europe has all the chances to stabilize.

According to polls, the majority of business owners expect the global economy to slow down this year, while not denying the possibility of avoiding a recession. This could be facilitated by the abandonment of the “zero tolerance” policy for COVID-19 in China – coupled with a slowly growing US economy and the receding threat of energy shortages in Europe, the global economy has every chance to resist a sharp decline.

The situation in the USA

A Bloomberg Economics model puts the chance of a recession in 2023 at 100%, although US economist Anna Wong says the reality is likely closer to 80%. She explains this by saying that consumption remains robust even in the face of an inflationary shock.