Bloomberg reported that the economic situation in the euro area continues to deteriorate, and the high energy prices create favorable conditions for stagnation, as evidenced by the new expectations of the European Commission.
Brussels now anticipates that the average price increases will be 8.5% this year and 6.1% in 2023, according to the agency.
A report by the European Commission stated that: “In an environment of increased uncertainty, high energy prices, the decline in the purchasing power of the population and the tightening of the conditions of financing, it is expected that the European Union, the eurozone and most of the economies of the recession will fall, and the increasing price pressures will turn to the peak of inflation to the end General.
Germany’s economy will suffer more in the region than the rest of the euro, meanwhile.
When expectations for economic growth in the euro zone for the following year were expected to be 1.4%, the European Commission cut its prediction for that growth to 0.3% in July.
The European Statistics Agency “Eurostat” reported that the annual inflation rate in the eurozone accelerated to a record level of 10.7% from 9.9% in October’s preliminary estimates.
Source: RT.
According to Bloomberg, Europe is geared up for the peak of inflation.
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