European Central Bank (ECB) Vice President Luis de Guindos drew attention to the possibility this Wednesday. Eurozone is experiencing technical recession In the second half of 2024.
Economic activity in the Eurozone slowed slightly in the third quarter De Guindos noted that initial indicators point to “an economic contraction in the fourth quarter,” which “confirms the possibility of a technical recession.”
At the fourteenth Spanish Investors’ Day forum in Madrid, Spain’s former Minister of Economy described the latest growth data as “discouraging” and underlined the “weak prospects” for the future.
The European banking sector confirmed its resilience thanks to comfortable levels. capitalization and profitability, despite long-term concerns.
He assured that the current state of the banking sector is “in good shape to withstand adverse shocks”.
But De Guindos said weak prospects for economic growth and rises in financing costs, among other factors, raise “concerns about long-term sustainability.”