According to the European Commission’s projection released on Monday, the economies of the 27 member states of the EU will continue to develop more slowly than anticipated due to high inflation
The Commission had expected the bloc’s GDP to increase by 1% in 2023, but the current state of affairs points to a growth of 0.8 %.
From 1.7 percent at first, the projection for 2024 has been lowered to 1.4 percent.
The research claims that the downturn was characterised by a decline in demand because of rising inflation rates.
“The coronavirus pandemic and Russia’s war in Ukraine have both been severe issues for the economy.
Although it has begun to decline, the high rate of inflation has had a negative impact, according to Valdis Dombrovskis, vice president of the European Commission.
The predicted inflation rates for 2023 and 2024 are 6.5 percent and 3.2 percent, respectively.
Prices of consumer goods are predicted to rise in the Eurozone by 5.6 percent in 2023 and 2.9 percent in 2024.
The European Commission has stated that, among other things, the ongoing conflict between Russia and Ukraine, high interest rates, inflation, and the effects of harsh weather on the economy continue to be threats to the bloc’s economy.