On Monday, the European Commission lowered its forecasts for the growth of the euro zone economy during the current and next years, amid expectations that the German economy, Europe’s largest economy, would slide into recession.
The Commission stated in a statement today that its estimates for the growth of the single currency economies amounted to 0.8% during the current year, down from estimates issued last May at 1.1%.
The Commission said its estimate for the region’s growth in 2024 is 1.3%, down from May’s estimate of 1.6%.
This decline in growth was explained by the damage to the German economy during the current year, amid weak demand, a decline in industrial production and a slowdown in the growth of its exports.
The Commission expected the German economy to contract by 0.4% in 2023, compared to a previous forecast of growth of 0.2%.
She added: “With regard to Germany, it appears to us that the economy there was negatively affected by the energy crisis resulting from the Russian-Ukrainian war… as energy prices rose sharply.”
Last July, the World Economic Outlook report issued by the International Monetary Fund stated that the German economy may record a contraction during the current year.
Inflation expectations in the euro area were also reviewed, as they are expected to remain much higher than the target of 5.6% in 2023, which is a lower rate than previous expectations of 5.8%.
TRT Arabic – Agencies
2023-09-11 19:05:45
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