The EU commission downgrades GDP and inflation forecasts.
The European Commission has downgraded its economic growth forecasts for the EU and the eurozone to 2.7% over the next two years. Inflation in 2022 is projected at 6.1% in the euro area and 6.8% in the EU. At the same time, according to forecasts, the GDP of the European Union and the eurozone will grow by only 2.7% in 2022. The forecast for GDP growth in 2023 has also been lowered: it is expected to be 2.3% against 2.8% in the EU. The growth of the world economy in this and following years is anticipated by the European Commission at 3.2% and 3.5%, respectively, against 4.2% and 3.8%, which were projected earlier. The European Commission emphasizes that energy prices are a significant blow to the world as well as the EU’s economies. Problems are also exacerbated by supply chain disruptions caused by Russia’s war in Ukraine.