The European Union downgraded on Monday its economic outlook, projecting slower growth for EU countries in 2023 and 2024.
In the Summer Economic 2023 Forecast, the European Commission announced that the EU economy will grow “with a reduced momentum.”
The report has revised expectations “in the EU economy down to 0.8% in 2023, from 1% projected in the Spring Forecast,” the EU executive body said in a statement.
The EU also revised projections for 2024 from 1.7% to 1.4%.
In a similar way, the euro area’s GDP is expected to rise by only 0.8% this year instead of the previously reported 1.1%, and 1.3% in 2024 instead of 1.6%.
In the meantime, the EU forecasts slightly less inflation for the upcoming two years.
Inflation may hit 6.5% in 2023 and 3.2% in 2024 in the 27 EU countries, compared to the previously expected 6.7% and 3.1%.
The eurozone is foreseen to see a 5.6% and 2.9% rise in prices in the upcoming two years, down from the earlier projections of 5.8% and 2.8%.
The European Commission has revised its economic forecasts for Germany, the largest economy in Europe. Germany is expected to shrink by 0.4% this year, a downgrade from the previous 0.2% growth prediction in May.
For the following year, German growth is also anticipated to be slower at 1.1%, down from the initial expectation of 1.4%.