In the Spring 2022 Economic Forecast, EU revised 2022 GDP growth forecast for Eurozone sharply lower, and inflation forecast sharply higher. Here are the new forecasts for Eurozone:
- 2022 GDP growth at 2.7% (down from Autumn forecast of 4.3%.)
- 2023 GDP growth at 2.3% (down from 2.4).
- 2022 HICP inflation at 6.1% (up from 2.2%).
- 2023 HICP inflation at 2.7% (up from 1.4%).
- 2022 HICP core inflation at 3.5% (up from 2.0%).
- 2023 HICP core inflation at 2.4% (up from 1.7%).
Valdis Dombrovskis, Executive Vice-President said: “There is no doubt that the EU economy is going through a challenging period due to Russia’s war against Ukraine… The overwhelming negative factor is the surge in energy prices, driving inflation to record highs… While growth will continue this year and next, it will be much more subdued than previously expected. Uncertainty and risks to the outlook will remain high as long as Russia’s aggression continues.”
