BusinessEurope summer economic outlook
BusinessEurope forecasts year-on-year growth in the EU economy of 2.6% for 2022, a downward revision of 1.3% from its autumn forecast, and 0.6% over the current year, thus increasing the possibility that individual EU Member States will experience at least “technical recessions” during 2022.
Moreover, although growth could reach 2.1% in 2023, BusinessEurope warns that there are significant downside risks to this figure.
Regarding inflation in the eurozone, it would stand at 6.5% in 2022 and will fall to 2.6% in 2023, subject to a fall in energy prices and moderate wage increases.
With the backdrop of these estimates, the new President of BusinessEurope, Fredrik Persson, stressed that it is crucial to improve the business environment to cope with rising costs and the slowdown in growth, striking the right balance between controlling inflation and supporting the recovery.
He also called for social interlocutors to be responsibly involved in collective bargaining on wages and for policymakers to strengthen the Single Market by removing barriers to trade and investment.
You will find this and other key issues in the European news, as well as a look at the main meetings in the European institutions during the week of July 11-15, in our newsletter “The EU in Headlines”.
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