Investment downturn to push euro-zone into recession

The resilience of investment in the euro-zone to higher interest rates and slowing economic growth at the start of the year appears to have been driven in part by the gradual clearing of backlogs in various industries. This has now come to an end and we expect tighter monetary policy to weigh on investment in the coming months, underpinning our view that the euro-zone will fall into a mild recession.

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