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Chart of the Week
A Breath of Fresh Air
Brighter days appear to be on the horizon in Europe, in our view. Given a historically mild winter, natural gas prices have fallen back to September 2021 levels, easing inflation pressures for households. Lower energy costs, along with resilient activity data, has notably lessened the risk of an energy crisis and improved our growth outlook. We no longer expect a European recession in the year ahead.
Source: Germany’s Meteorological Service and Goldman Sachs Asset Management.