This forecast is the first comprehensive analysis of the economic costs of Russia’s war against Ukraine for 19 euro area countries and 27 EU countries.
The European Commission has worsened its forecast for GDP and inflation due to Russia’s invasion of Ukraine. This was reported by Reuters.
This forecast is the first comprehensive analysis of the economic costs of Russia’s war against Ukraine for 19 euro area countries and 27 EU countries.
The growth forecast for the 19 euro area country was reportedly lowered to 2.7% this year from the 4.0% forecast before the war. Growth will slow to 2.3% next year, also less than the 2.7% expected before the invasion.
“The outlook for the EU economy before the outbreak of war was one of sustainable and sustainable growth. But Russia’s invasion of Ukraine brought new challenges, such as the Union’s recovery from economic collapse from the pandemic,” said the European Commission in a statement.
Inflation, which the European Central Bank wants to keep at 2%, will be 6.1% this year, the European Commission predicts, and will fall to 2.7% next year. Before the war, the European Commission expected prices to increase by 3.5% in 2022 and 1.7% in 2023.
It was reported that, despite government spending to curb energy prices and support millions of refugees from Ukraine, the total EU state budget deficit should drop in 2022 to 3.6% of GDP from 4.7% in 2021, because support for interim measures was canceled due to COVID. -19.
In the eurozone, the total deficit is expected to drop by half to 3.7% this year compared to 2021 and further to 2.5% next year, while the eurozone’s total public debt will drop to 94.7% of GDP from 97. 4%. in 2021 and beyond. decreased to 92.7% in 2023.
Despite slower growth, eurozone unemployment will drop to 7.3% of the workforce in 2022 and to 7% in 2023 from 7.7% in 2021.
Recall that the head of the European Commission called Russia a direct threat to world order.
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Source: korrespondent
