Brussels, 15 July 2022 (TDI): The European Commission has published the Summer 2022 Economic Forecast, indicating inflation in the economy.
The Economic Forecast reflects that the European economy will grow by 2.7% this year and 1.5% in 2023. While the Euro area’s growth is projected at 2.6% in 2022 and 1.3% in 2023.
Moreover, average inflation is projected at 7.6% in 2022 in the Euro area and 8.3% in the European economy. It is expected to ease to 4% and 4.6% in 2023, respectively.
However, in the spring economic forecast, the European Commission projected that inflation in the euro area would be 6.1% in 2022 and 2.7% in 2023. Now, the commission has revised the forecast. In the euro area, inflation is projected to peak at 8.4% in the third quarter of 2022.
Remarks by the Vice-President of Economy
The EU Commission’s Executive Vice-President for an Economy, Valdis Dombrovskis, said, “Russia’s war against Ukraine continues to cast a long shadow over Europe and our economy. We are facing challenges on multiple fronts from rising energy and food prices to a highly uncertain global outlook.
We are fortunate to be starting from a position of strength, having weathered through the previous crisis with a solid return to growth.
Economic growth will slow markedly in the second part of this year but gain more traction in 2023.
In view of high inflation and tightening financing conditions. It will be important to find the right balance between moving toward a more prudent fiscal stance and protecting the most vulnerable. We should also reduce our dependence on Russian fossil fuels.”
Remarks by the Economic Commissioner
The EU Commissioner for Economy, Paolo Gentiloni, said, “Russia’s unprovoked invasion of Ukraine continues to send shockwaves through the global economy. Moscow’s actions are disrupting energy and grain supplies, pushing up prices, and weakening confidence.
In Europe, momentum from the reopening of our economies is set to prop up annual growth in 2022, but for 2023 we have markedly revised our forecast.
Record-high inflation is now expected to peak later this year and gradually decline in 2023. With the course of the war and the reliability of gas supplies unknown, this forecast is subject to high uncertainty and downside risks.
Furthermore, to navigate these troubled waters, Europe must show leadership, with three words defining our policies: solidarity, sustainability, and security.”
Senior year student of International Relations at Kinnaird College.
