CitigroupCNBC’s Jane Fraser, CEO of Jane Fraser said that she believes Europe is heading into recession.

At the World Economic ForumFraser claimed Monday that Europe was vulnerable because of a combination of factors including Ukraine’s war and its resulting energy crises. However, other regions of the world are showing signs of resilience.

She stated that “Europe is in the middle” of storms, including supply chain disruptions, energy crises, and the close proximity of some atrocities in Ukraine. Geoff Cutmore.

Fraser answered the question “Yes” when asked if these factors had convinced her that Europe would experience recession.

Due to Russian sanctions, European energy prices have skyrocketed in recent months. A wider rise in inflation has exacerbated the cost-of living crisis.

Wall Street Chief Janet Sullivan did not provide a timetable for the downturn. Her October 2021 forecast of a downturn was however accurate. “brutal winter”The prediction of markets was largely correct. Stock markets began a significant sell-off early in 2022, and losses continued to this day.

Fraser suggested that while the U.S. may have shown more resilience in its economy, labour market, and consumer markets, they could still be vulnerable to a recession. However, much will hinge on how Federal Reserve handles its rate hike strategy in an inflationary environment.

She said, “There is some buffer there.” To be determined if the buffer is used wisely.

Asia has been displaying “a sense optimism” and is now recovering from the Covid-19 epidemic.

Fraser was part of a panel titled “Global Economic Outlook” where she was joined Francois Villeroyde Galhau who is the governor of France’s Central Bank and an EU Central Bank policymaker.

Villeroy de Galhau stated he wouldn’t “disagree with Fraser’s prognosis of the European economy. He described it as instead being “resilient.”

He stated that inflation was the main issue, at least for the near term. This is why normalizing monetary policy is necessary.

On Friday, the ECB gave its most clear indication to date that it would soon begin hiking interest rates — potentially in July — with market players now pointing to at least four rate hikes before the end of the year.

The ECB insists that rate rises should not be allowed. price pressures would diminish in the second half of the year.

Inflation in the Euro zone reached a new record for April, as it hit an all-time high of 6.2%. ongoing war in Ukraine The region was impacted by Europe’s declining energy supplies, which had a negative impact on its economy.

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