The European Union’s (EU) economy lost momentum in 2023, according to the European Commission’s Autumn Economic Forecast published here on Wednesday.
The Commission has downgraded its forecast for economic growth in both the EU and the eurozone this year to 0.6 percent from the previously projected 0.8 percent.
The Commission said that real gross domestic product (GDP) in the EU barely grew in the first three quarters of 2023. High inflation, though declining from its peak, and tightening monetary policy took a heavier toll than previously expected, alongside weak external demand.
The latest business indicators and survey data for October pointed to subdued economic activity also in the fourth quarter of this year, amid increased uncertainty.
“We are approaching the end of a challenging year for the EU economy. Strong price pressures and the monetary tightening needed to contain them, as well as weak global demand, have taken their toll on households and businesses,” European Commissioner for Economy Paolo Gentiloni said.
The EU GDP is projected to increase by 1.3 percent in 2024, 0.1 percentage points below the summer forecast. The eurozone economy is expected to grow 1.2 percent next year. For 2025, the Commission projected 1.7 percent growth for the EU and 1.6 percent for the eurozone. Source: Xinhua
