European Commission downgrades eurozone GDP growth forecast for 2022

The European Commission has downgraded its forecast for real GDP growth in the euro area for the current year to 2.7%, Report informs referring to the spring economic report of the EC.

The previous estimate was made in the EC Winter Interim Economic Forecast released in February. Then the economy of the currency bloc was expected to grow by 4%.

The EC also lowered its eurozone GDP growth forecast for 2023 to 2.3% from the February estimate of 2.7%.

Inflation in the euro area is expected to accelerate to 6.1% in 2022 from 2.6% in 2021 and slow to 2.7% in 2023.

The EC expects the highest GDP growth this year in Portugal (+5.8%), Ireland (+5.4%), and the smallest in Estonia (+1%), Finland (+1.6%) and Germany (+1.6%). In 2023, the German economy is expected to grow by 2.4%.

In addition, the EU economy is expected to grow by 2.7% in 2022 and by 2.3% in 2023.