Most recent statistical information shows that the European Union is entering recession, while inflation across all member states is surging, European Commissioner for Economy Paolo Gentiloni said on Monday
MOSCOW (Pakistan Point News / Sputnik - 05th December, 2022) Most recent statistical information shows that the European Union is entering recession, while inflation across all member states is surging, European Commissioner for Economy Paolo Gentiloni said on Monday.
"Inflation is peaking and recent data seems to confirm this assessment. High frequency new data are confirming more or less what is in our forecast, that we are entering in a contraction for this winter. Our economies should start to be again positive since spring next year, but of course with a very subdued growth," Gentiloni said arriving for the Eurogroup in Brussels.
In its Autumn 2022 Economic Forecast, the Commission predicted that the European Union would be facing challenging times due to recession in the last quarter of 2022. While GDP growth will amount to 3.3% in annual terms thanks to strong consumer activity in the first half of the year, the rate will drop to 0.3% in 2023, according to the forecast. Inflation will decline to 7.0% compared to 9.3% in 2022, it also said.
Inflation began to grow worldwide in mid-2021 and the situation got worse due to the COVID-19 pandemic and the Ukraine crisis. Sanctions imposed on Russia by Western countries contributed to increased energy and food prices in Europe as well.
