If you thought the economic outlook is bad here in the UK, take a glimpse across the Channel were the storm clouds are even blacker. The euro fell to a new 20-year low against the dollar this morning, falling by 0.3 per cent to $0.9913, as the markets continue to wobble in the face of the energy crisis on the continent.

Inflation hit 8.9 per cent in the euro area in July, up 0.3 per cent from the previous month, leading to recession fears. What’s more, the latest S&P eurozone PMI figures signalled a second month of downturn in business activity.  Rocketing gas prices are the main reason behind the gloom with gas price inflation reaching 52.2 per cent in July, with the Nord Stream 1 pipeline running only at 20 per cent capacity.

In Germany, the largest economy in the eurozone, recession is looking increasingly likely as the central Bundesbank warns that inflation could surpass 10 per cent in the autumn, as the nation struggles to cut down on its consumption of Russian gas.

It’s a stark reminder, if one were needed, that we are heading for a global recession.