Europe’s Economy Slows Sharply as Recession Risks Grow

Europe’s economy slowed sharply in June as surging prices of energy and food weakened demand for other goods and services, business surveys showed, increasing the risk that some countries will slide into recession over coming months.

The new data underlines how dark the outlook for Europe’s economy has become as Russia’s war in Ukraine drags on, with high inflation spreading across the board, the prospect of rising interest rates and a possible energy shortage this winter, not to mention persistent supply-chain bottlenecks across sectors.