Sunday, 14 August, 2022
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EU cuts eurozone growth forecasts

EU cuts eurozone growth forecasts

BRUSSELS: The European Commission on Thursday slashed growth forecasts for the eurozone, saying the consequences from the war in Ukraine were continuing to destabilise the economy because of record high inflation.

The EU executive, which tracks the economy for the 27 countries in the European Union, said GDP growth in the eurozone would reach 2.6 percent in 2022 and a sharply lowered 1.4 percent in 2023, reports AFP.

Inflation would end the year at 7.6 percent, much higher than previously forecast, and 4.0 percent in 2023. This is still well above the EU's target level of 2.0 percent and up from a previous prediction of 2.7 percent.