Brussels: Russia’s war with Ukraine continues to have a negative impact on the EU economy, with lower growth and higher inflation compared to spring forecasts, according to the European Commission’s summer 2022 EU economic forecast released Thursday. I’m on the road.
The forecast is that the EU economy will grow 2.7% in 2022 and fall to 1.5% in 2023.
Eurozone growth is expected to decline to 2.6% in 2022 and 1.4% in 2023.
Average annual inflation is projected to peak at 7.6% in the euro area and 8.3% in the EU in 2022, and will ease to 4.0% and 4.6% in 2023, respectively.
The EU economy says it remains particularly vulnerable to the development of energy markets due to Russia’s high reliance on fossil fuels.
However, the forecast points out that the risks to economic activity and inflation forecasts are highly dependent on the progress of the war in Ukraine, especially the impact on gas supply to Europe.
EU Economic Commissioner Paolo Gentiloni said at a press conference in Brussels that he predicted:
Moscow’s actions disrupt energy and grain supplies, boost prices and weaken confidence.
“Brent crude oil prices peaked in mid-June, but then plummeted as evidence of a slowdown in global demand increased.
The oil futures curve that underpins this forecast shows slightly higher prices over the forecast period compared to spring. Despite the promising summer tourism season, the rest of the year’s economic activity in the block of 27 members is expected to be curtailed, he said.