The high consumer prices also have an impact on the expected economic growth in the EU. The commission is forced to lower the forecast by 0.2 percent.
According to a forecast by the EU Commission, the economy in the European Union will grow more slowly this year than recently expected. The authority expects growth of 0.8 percent for the EU and the euro zone, according to the estimate published in Brussels. In the spring forecast presented in May, the Commission had assumed an increase of 1.0 percent (Eurozone 1.1). The reason for the poorer outlook is also the weak consumption in the first half of the year due to further rising consumer prices.
Germany in recession
According to estimates, the economy in Germany will shrink by 0.4 percent this year. In May, growth of 0.2 percent was forecast for the EU’s largest economy. The authority now expects the German economy to grow by 1.1 percent in 2024 (previously 1.4).
Across the EU, the Commission has also lowered its forecast for the coming year and now expects economic growth of 1.4 percent (previously 1.7). The authority estimates economic growth in the euro zone in 2024 at 1.3 percent (previously 1.6).
Inflation in the euro zone has been revised downwards compared to spring (5.8 percent) – to 5.6 percent this year. 2.9 percent (previously 2.8) is expected for 2024.
Economic forecasts from the EU Commission
Source: Stern
