Kuzman Iliev: Economic prospects are gloomy for Europe to say the least – Economy

Kuzman Iliev: Economic prospects are gloomy for Europe to say the least – Economy
Kuzman Iliev: Economic prospects are gloomy for Europe to say the least – Economy
  • September 23, 2022
    07:58

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Gloomy economic prospects for Europe. That’s how economists see the situation after the euro fell to a new 20-year low.

“Europe is the continent most affected by the geopolitical situation. The economic prospects for Europe are, to say the least, bleak,” commented economist Kuzman Iliev.

He gave Germany as an example. “The engine of the European economy – Germany, you see what a complicated situation it is in. It is practically entering a recession due to the high prices of energy resources, due to the many policies that prevent the creation of production capacity. Add to that the Federal Reserve being much bolder in raising interest rates, and capital going to where the high interest rates are – to the dollar, you get this global uncertainty. Everything goes to the dollar and it strengthens. And the ECB was slow to raise interest rates,” explained Iliev.

Economist Georgi Vuldjev commented that this will no longer be enough to reach the previous levels of the exchange rate.

“Economic problems must be cleared up. In my opinion, the optimistic scenario is to maintain this parity. But it is possible that the exchange rate will fall below this parity,” said Vuldjev.

The strengthening of the dollar means that we will become even poorer, explained Kuzman Iliev. “We will import foreign goods more expensively. Food and fuel trade is in dollars,” explained Iliev.

“In the next few years, the euro may further depreciate and lose more purchasing power,” Vuldzhev explained.

Kalina Hristova

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The article is in bulgaria

Tags: Kuzman Iliev Economic prospects gloomy Europe Economy

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