The European Commission presents its summer 2022 economic forecast
The European Commission expects the economy of the eurozone and the EU as a whole to grow by 2.6% and 2.7% respectively in 2022 and by 1.4% and 1.5% in 2023; this represents a worsening since the 2022 spring forecasts.
While real GDP will continue to grow, it will do so almost one point below the latest estimates. Inflation, which has also been revised upwards, will be 7.6% in the eurozone this year, before falling to 4.3% in 2023, compared to 8.3% and 4.6% respectively in the EU.
For Spain, the forecast is for growth of 4% in 2022 (+0% compared to the last forecast) and 2.1% (-1.3%) in 2023, and inflation of 8.1% in 2022 and 3.4% in 2023. The economies of Germany (+1.4% and +1.3%), France (+2.4% and +1.4%) and Italy (+2.9% and +0.9%) have also seen their growth rates revised downwards in 2022 and 2023, and their inflation rates will remain at 7.9% and 4.8%; 5.9% and 4.1%; and 7.4% and 3.4% respectively.
The Commission underlines the fact that Russia’s invasion of Ukraine has increased pressures on energy and food prices, but it anticipates a boost to growth in 2023 driven by the labour market, moderation of inflation, the Recovery and Resilience Facility and the amount of excess savings.
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 in the weeks from July 18 to 29, in our newsletter “The EU in Headlines”.
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