Economic Buzz: European Commission Trims Estimate For EU Economic Growth

14 Jul 2022 , 05:16 PM

The European Commission has trimmed its forecast for EU economic growth in 2023 as it noted that the shocks unleashed by the war are hitting the EU economy both directly and indirectly. The rapid increase in energy and food commodity prices is feeding global inflationary pressures, eroding the purchasing power of households and triggering a faster monetary policy response than previously assumed. EU has cut its forecast for gross domestic product (GDP) growth in the EU for 2023 to 1.5%, from its outlook for a 2.3% in May. The commission maintained its forecast for 2.7pc GDP growth this year. For the Eurozone, the commission now sees growth of 2.6% this year and 1.4% in 2023, compared with its prior forecast of 2.7% and 2.3%.Powered by Commodity Insights