Morgan Stanley CEO Says Probability of Recession in Europe Higher Than 50%

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50-euro banknote under fluorescent light (UV-A) - Sputnik International, 1920, 17.07.2022
MOSCOW (Sputnik) - The Chairman and CEO of Morgan Stanley, James Gorman, believes that the probability of a recession in Europe is a lot higher than 50%.

"For the United States I estimate the risk as 50-50. In my opinion, the risk is a lot higher for Europe. Not 100%, but definitely a lot higher than 50%," Gorman told the French newspaper Le Journal du Dimanche.

However, Gorman does not consider the recession to be a serious problem. In his opinion, the world will not collapse due to the decline in economic activity and perhaps the international community will be able to overcome this problem quickly. Even though the world was going through a health crisis and functioned in a rather difficult political context, the measures that the governments took to support the economy allowed for strong global growth in 2021, the CEO added.

"There are no doubts that we will live in turbulent times," Gorman stated.

The Morgan Stanley CEO said that it is unlikely that the world will face uncontrollable inflation. Mass public engagement, influenced by the energy crisis also appears unlikely to Gorman.
The EU is facing severe inflation with the euro falling below the dollar for the first time in 20 years, while the economic forecasts for the bloc remain pessimistic. The crisis arose as European nations slapped sanctions on Moscow, after Russia launched a military operation in Ukraine. Because of EU policies, energy prices skyrocketed and the countries are now at risk from suffering from fuel shortages.
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