“We see many things indicating a contraction in economic activity this winter in the coming months . . . inflation in the eurozone jumped to 10. 7 percent,” Gentiloni told a press conference in Brussels after the 19 euro ministers meeting.
“We expect energy prices to continue high for some time in the future, which is only one of the reasons we need to collaborate to improve our performance.
“Everyone has known for some time that the economy in the euro region slows down,” said Basashal Donuho, head of the euro group, during the same press conference.
He pointed out that the European Commission was expected to grow by 2. 3 percent for 2023 before the conflict erupted in Ukraine, noting that the latest growth number in the eurozone in October is 0. 5 percent.
When UNHCR releases its expectations at the end of the week, he continued, “We will learn more information about the growth expectations from UNHCR.”
He said, “We need to maintain solid policies and continue our meticulous monitoring.” He went on to say that the larger picture of inflation and economic and geopolitical uncertainty will have a significant impact on European banks and their financial sectors.
He continued, “According to estimates from the European Commission, the governments of the eurozone have spent around 1.
This year, the eurozone will spend roughly 200 billion euros, or 25% of its GDP, on energy support.
A European official predicts that the region’s economies would contract by winter.
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