The Russian war of aggression against Ukraine continues to have a negative effect on the EU economy and thus also on Austria. The European Commission has revised its economic outlook downwards from its spring forecast. Domestic inflation amounts to an annual average of 7.6 percent, in May it was still 6.0 percent. However, according to the summer forecasts, the peak of record inflation would be exceeded this year.
In 2023 inflation will gradually decrease. According to the economic forecast of the Brussels authorities, it is expected that the European Central Bank (ECB) will again miss its target of 2.0 percent in 2023 with an expected inflation of 4.0 percent (spring forecast: 2.7 percent). the Inflation in the euro area is expected to peak at 8.4 percent year-on-year in the third quarter of 2022 and decline steadily thereafter, the agency expects. It should fall below three percent by the last quarter of 2023.
Growth forecast revised downwards
The European Commission has withdrawn its growth forecast for the eurozone. This year, gross domestic product (GDP) growth of just 2.6 percent is expected. In the spring, Brussels estimated that at 2.7 percent. In 2023 there would only be a meager increase of 1.4 percent – instead of the previously expected 2.3 percent.
EU Commissioner for Economic and Monetary Affairs Paolo Gentiloni sees the effects of the war at the gates of the EU as a motor of development: “Ukraine’s groundless invasion of Ukraine continues to send shockwaves through the global economy.” This would disrupt the energy and grain supply. As a result, prices rose and confidence suffered, the Italian emphasized.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
