EU Commission lowers economic forecast again
According to a forecast by the European Commission, the EU economy will grow more slowly this year than recently expected. The authority expects growth of 0.6 percent for the EU and the eurozone, according to an estimate. This is the second time in a row that it has lowered its forecast. In September, the Commission was still forecasting growth of 0.8 percent.
The European economy has lost momentum this year due to the high cost of living, weak foreign demand and a tighter monetary policy, according to the Brussels authority.
According to the estimate, the German economy will shrink by 0.3 percent this year. In September, a decline of 0.4 percent had been predicted for the EU's largest economy. For 2024, the authority expects the German economy to grow by 0.8 percent (previously 1.1 percent) and by 1.2 percent in 2025. This means that Germany will remain below the expected average in the eurozone.
The Commission has also lowered its EU-wide forecast for the coming year and now expects growth of 1.3% (previously 1.4%). The authority estimates economic growth in the eurozone in 2024 at 1.2 percent (previously 1.3 percent). For 2025, it forecasts growth of 1.7 percent in the EU (eurozone: 1.6 percent).
Inflation in the eurozone is expected to remain at 5.6% this year. A decline is expected for the coming year.
The European Commission, citing the EU's economic situation, has revised its growth forecast for the EU and the eurozone downward for the second time this year. Despite this, the Commission still anticipates moderate growth for the EU economy in 2024 and 2025.
The economic situation in the EU, as indicated by the Commission's estimates, has negatively impacted the growth prospects of its largest economy, Germany, which is now expected to contract slightly in 2023.
Source: www.dpa.com
