The war in Ukraine weighs on the European economy, which will grow less than expected in the spring forecast
The Russian invasion of Ukraine casts a shadow over the economic prospects of the European Union. The summer report prepared by Brussels paints a much worse reality than in the spring, with lower growth and skyrocketing inflation. According to the European Commission’s forecast, the eurozone will contract a “significant” contraction, growing by 2.6% this year and 1.4% in 2023. the one who comes.
This represents a downward revision of the spring economic forecast, which estimated GDP to grow by 2.7% in 2022 and 2.3% next year. Inflation, on the other hand, will rise to 7.3%, a record high.
Brussels assures that “many of the risks” identified in the spring forecast have materialized, with the rise in food and energy prices, which has put inflationary pressures further. The European economy is “particularly vulnerable” to energy cost volatility, due to its heavy reliance on Russia, which has depressed activity. According to Brussels projections, we will have to wait until 2023 before the economy picks up again and inflation slows to 4%.
As for Spain, the European Commission calculates a growth rate of 4% this year and 2.1% next year, as one of the European economies that will grow the most in 2022, but with a major cut in its projections for 2023.
Economic Affairs Commissioner Paolo Gentiloni has assured that “the reopening of the economy after the pandemic will maintain economic activity this year, but be much lower in 2023”, following the Russian invasion of Ukraine. In these difficult times, “Europe must show leadership, with solidarity, sustainable and secure policies”, he added.
Source: La Verdad
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