The European Commission is now talking about inflation in the euro zone for 2023 at 6.1%, against only 4% expected so far.
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Brussels is pessimistic. On Friday, November 11, the European Commission further darkened its economic forecasts for Europe by announcing in a press release a recession at the end of the year.
The executive of the European Union (EU) also raised its inflation expectations, due to the energy surge linked to the war in Ukraine. It now expects 6.1%, against only 4% expected so far, but it estimates that the rise in prices will decline after reaching its peak at the end of 2022.
Over the whole of 2022, the Commission expects inflation to be stronger than expected at 8.5%, against 7.6% previously expected. “Uncertainty remains exceptionally high” due to the unpredictable evolution of the war, however, warned the European Commissioner for the Economy, Paolo Gentiloni, during a press conference.
While anticipating a return to growth in the spring, the Commission has revised its GDP growth forecast for 2023 downwards. It now stands at just 0.3% for countries sharing the single currency, compared to 1.4 % expected so far.