Swedbank forecasts inflation to subside because of recession

Swedbank Lithuania forecasts in its latest Economic Outlook that more factors will emerge at the end of the year slowing down economic growth and next year a number of countries will experience a recession.

Chief Economist at Swedbank Lithuania Nerijus Mačiulis says the war in Ukraine, continuing isolation of Russia, China’s struggling economy, the European energy crisis, inflation that reduces people’s purchasing power and more expensive borrowing will be the factors that could cause a recession in a number of countries. According to him, the recession should not be deep, but sufficient to quell high inflation.