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ICYMI – Former ECB President Draghi says a eurozone recession is almost sure to happen

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Former European Central Bank President, and former prime minister of Italy, Mario Draghi was cited in a report on a conference organised by the Financial Times.

The FT is gated but other news services have picked up the main points made by Draghi:

  • euro zone is nearly certain to experience a recession by the end of 2023
  • “The starting point of this recession is pretty high — we never had such low unemployment,”
  • “So we may have a recession, but maybe it is not going to be destabilizing.”

Comments were also reported from Belgian central bank governor Pierre Wunsch:

  • acknowledged the impact of tighter monetary policy
  • said that growth risks are “tilted to the downside.”
  • euro zone is “entering some weak form of stagflation”

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