In the Autumn Economic Forecast, European Commission upgraded 2021 GDP growth projection to 5.0% (vs Spring’s forecast of 4.3%). Growth is projected to slow to 4.3% in 2022 (vs 4.4), and then 2.4% in 2023.
HICP inflation is projected to peak at 2.4% in 2021 (vs Spring’s 1.7%), then slow to 2.2% in 2022 (vs prior 1.3%) and then slow to 1.4%.
Valdis Dombrovskis, Executive Vice-President for an Economy that Works for People, said: “This is no time for complacency: we continue to face uncertainty with this virus and there are some risks to contend with. Not least, we need to address bottlenecks in supply chains, as well as surging energy prices which will affect many households and companies across Europe. We also need to closely monitor inflation and adjust our policies if needed.”
