"The EU economy has lost momentum since spring," European Commissioner for Economy Paolo Gentiloni told a press conference on Monday. While praising EU's monetary policy tightening for working its way through the economy, the report said that survey indicators now point to slowing economic activity in the summer and the months ahead, with continued weakness in industry and fading momentum in services, despite a strong tourism season in many parts of Europe. This is despite the declining energy prices and an exceptionally strong labor market, which has seen record low unemployment rates, continued expansion of employment, and rising wages. Weakness in domestic demand, in particular consumption, shows that high and still increasing consumer prices for most goods and services are taking a heavier toll than expected in the spring forecast, according to the report. The commission said that latest data confirmed that economic activity in the EU was subdued in the first half of 2023 on the back of the formidable shocks the EU has endured. In the eurozone, inflation is forecast at 5.6 percent in 2023 and 2.9 percent in 2024, compared with the 5.8 percent and 2.8 percent, respectively, predicted in May. The commission predicted that EU inflation will continue to ease to reach 6.5 percent in 2023 and 3.2 percent in 2024, compared to the 6.7 percent and 3.1 percent, respectively, predicted in spring. It also revised the growth in the 20-member eurozone down to 0.8 percent in 2023 and 1.3 percent in 2024, compared to the 1.1 percent and 1.6 percent, respectively, projected in the spring forecast. The Summer 2023 Economic Forecast released on Monday predicted the 27-member European Union economy to grow only 0.8 percent in 2023 and 1.4 percent in 2024, from the 1 percent and 1.7 percent, respectively, projected in the spring forecast in May. The European Commission marked down its economic growth for 20 for both the bloc and eurozone despite predicting falling inflation. A European Union flag flutters outside the EU Commission headquarters, in Brussels, Belgium, February 1, 2023.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |