HM Wilkins Imperial Warns Energy Crisis Could Mean Recession for Euro Zone

Hong Kong, Hong Kong S.A.R., August 01, 2022 --(PR.com)-- A recent report by Asia-Pacific-based investment house, HM Wilkins Imperial, revealed that the Euro zone economy is likely to slip into a recession next year as Russia continues to cut gas supplies to the region.

The report showed that even though the euro zone beat economists’ estimates for growth in the second quarter, economic growth would likely be severely impeded by a complete shut off of gas supplies by Russia.

A major Russian gas supplier has already cut supplies of gas to one fifth of its full capacity in recent weeks, causing disruptions in supply to several European countries.

The report by HM Wilkins Imperial pointed to various other factors apart from the energy crisis that will likely also contribute to the increased likelihood of a recession.

“Inflation in the region has been soaring in recent months and will likely continue to rise in the coming quarters,” says Mr. Chang Chin Lung, Chief Executive Officer at HM Wilkins Imperial.

“In spite of the better-than-expected growth for the second quarter of this year, we must remain cognizant of the other challenges facing the euro zone economy,” said Mr. Chang Chin Lung.

HM Wilkins Imperial analysts stated that supply chain disruptions would continue to pose a significant challenge for the growth of the Euro Zone.

The European Commission believes a recession could occur as early as this year given the challenges facing the region’s economy.