Outlook on Europe: October 2023

Lazard's Outlook series provides a forward-looking view, over the short, medium, and/or long term, of asset classes, sectors, regions, or countries from the view of Lazard Asset Management. In this edition, LAM portfolio managers share their outlook for Europe in Q4 2023.

Summary

• Higher interest rates are steadily driving down inflation across Europe, but the economic growth picture is proving more mixed at the country level.
  
  
• The added complexities created by post-Covid normalization and the Russia-Ukraine war are complicating the economic outlook, making it tougher to discern whether Europe faces a soft or hard landing.
  
  
• Despite the headwinds of higher rates, the prospect of rising real incomes and a robust employment market should provide some resilience.
  
  
• Our European Fixed Income team retains a preference for investment-grade bonds over high-yield debt.
  

Click here to read our Outlook on Europe for Q4 2023.