EU forecast: with falling inflation, the growth momentum of the economy will ease

By: Trademagazin Date: 2023. 09. 11. 14:43

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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.