After a strong first half of the year, the EU economy has now entered a much more challenging phase.
The shocks unleashed by Russia’s war of aggression against Ukraine are denting global demand and reinforcing global inflationary pressures.
The EU is among the most exposed advanced economies due to its geographical proximity to the war and heavy reliance on gas imports from Russia.
The energy crisis is eroding households’ purchasing power and weighing on production. Economic sentiment has fallen markedly.
As a result, although growth in 2022 is set to be better than previously forecast, the outlook for 2023 is significantly weaker for growth and higher for inflation compared to the European Commission’s Summer interim Forecast.
For more information a press release is availble online.