According to the European Commissioner for Economy, “the EU economy is at a turning point. He added that the economy had lost momentum in the third quarter and that data point to a contraction this winter.
The European Commission predicts that the eurozone economy will enter a technical recession in 2023, closing the year with a slight gain of 0.3%.
Autumn macroeconomic forecasts released this Friday by the Community Executive expect growth to slow significantly over the winter and inflation to remain elevated for longer in a European Union particularly affected by the war in Ukraine and its energy derivative.
“The EU economy is at a turning point. After a surprisingly strong first half of the year, the economy lost momentum in the third quarter and data points to a contraction this winter,” the commissioner said, presenting the report. Economy, Paolo Gentiloni, anticipating that “most countries” will enter a technical recession.
Due to the good start to the year, GDP will close 2022 with growth of 3.2% in the euro area and 3.3% in the EU, six and fifteenths respectively above previous projections, despite the economy already starting to recover. end of the year.
Specifically, GDP will yield 0.5% in the fourth quarter of 2022 and 0.1% in the first quarter of 2023 in both areas, making it possible to speak of a technical recession by linking two quarters of declines.
High energy prices, uncertainty, loss of purchasing power, global weakness and tighter financing conditions will fuel a contraction that will begin to reverse in the spring, leading to a GDP increase of 0.3% in both the eurozone and the EU next year.
All this in a scenario where inflation continues to rise to a peak at the end of this year, as the European Commission forecasts an average rate of 8.5% in the eurozone by 2022 and 9.3% in the EU, which will be reached by 2023. would fall to 6.1% and 7% respectively. In both cases, these levels are much higher than the forecasts for the summer.
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Source: EITB
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.
