EU forecast: with falling inflation, the growth momentum of the economy will ease
In addition to the expected further decrease in inflation, the European Union’s economy will remain on a growth path, even though its momentum is easing, which is expected to last until 2024, the European Commission said in its interim summer economic forecast published on Monday.
Economic policy commissioner Paolo Gentiloni explained the forecast and said: the EU commission will change the growth of the EU economy from the 1 percent outlined in its spring forecast to 0.8 percent for the whole of 2023, and from 1.7 percent to 1.4 percent for 2024. The forecast moderates the growth of the euro zone in 2023 from 1.1 percent to 0.8 percent, and for 2024 from the previously indicated 1.6 percent to 1.3 percent.
Inflation is expected to decrease further. Harmonized index of consumer prices (HICP) inflation is forecast to reach 6.5 percent in 2023, compared to 6.7 percent indicated in the spring. In 2024, this indicator will change to 3.2 percent from the indicated 3.1 percent.
According to the forecast, inflation in the euro area will be 5.6 percent in 2023, against the previously indicated 5.8 percent, and in 2024, it is expected to be 2.9 percent, against the expected 2.8 percent.
Related news
KSH: The services foreign trade surplus was 2.2 billion euros in the first quarter
In the first quarter of 2025, exports of services in…
Read more >Russian cucumbers flood the EU: the market for Polish producers is tense
Although the European Union’s sanctions policy on Russian agricultural products…
Read more >The government supports the tourism sector with a new tool
Tourism is a sector of strategic importance for the Hungarian…
Read more >Related news
Viktor Orbán: we will introduce margin reduction for new products as well, if necessary
The margin regulation must be maintained because people must be…
Read more >Healthy meat products rich in fiber and protein have been developed in Debrecen
A new product line consisting of health-promoting, fiber- and protein-rich…
Read more >German retail sales fell month-on-month in April
In Germany, retail sales fell by 1.1 percent in real…
Read more >