This caused the euro area and global inflation to surge further, and accelerated the process of winding down of the historic monetary stimulus globally. In turn, the worry arose whether all these developments could tip our economies into a recession, as shown – for example – by the rising number of Google searches for the word "recession".
The topic was also high on the agenda at the recent gathering in Davos. Within the Eurosystem, we are in the process of preparing new macroeconomic projections, which we will publish next week.1 As already revealed publicly, the recession is not part of the baseline scenario that is the most likely to materialise.