Record inflation and slower growth forecast for EU economies

Slower economic growth is forecast for EU economies with record inflation to peak this year. That's according to the European Commission which today published its summer economic forecast. 

The EU executive said the euro area economy is forecast to grow by 2.6 percent (2.6%) this year but only 1.4 percent (1.4%) next year. The bloc as a whole will grow by 2.7 percent (2.7%) this year and 1.5 percent (1.5%) in 2023 according to the Commission. 
 
Annual average inflation is projected to peak at historical highs this year at 7.6 percent (7.6%) in the euro area and 8.3 percent (8.3%) in the EU. But inflation is forecast to ease next year to 4 percent (4.%) in the euro zone and 4.6% in the EU as a whole. 
 
The European Economy Commissioner Paolo Gentiloni said Russia’s war against Ukraine continues to “send shockwaves through the global economy”.  And he said Moscow’s actions are disrupting energy and grain supplies, pushing up prices and weakening confidence. 
 
Out words: previous forecast 
 
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