The EU has cut its forecasts for GDP growth from 4 per cent this year and 2.8 per cent in 2023 to 2.7 per cent and 2.3 per cent respectively following the Ukraine war.
EU cuts forecast for economic growth as war’s fallout widens
BRUSSELS: The European Union has slashed its forecasts for economic growth in the 27-nation bloc amid the prospect of a drawn-out Russian war in Ukraine and disruptions to energy supplies.
The EU’s gross domestic product will expand 2.7 per cent this year and 2.3 per cent in 2023, the bloc’s executive arm said Monday — its first economic predictions since Russia invaded Ukraine on February 24.
The European Commission’s previous outlook expected growth of 4 per cent this year and 2.8 per cent in 2023. The EU economy expanded 5.4 per cent last year following a deep recession prompted by the Covid-19 pandemic. GDP shrank 5.9 per cent in 2020.
“Russia’s invasion of Ukraine has posed new challenges, just as the union had recovered from the economic impacts of the pandemic,” the commission said when releasing the forecast. “The war is exacerbating pre-existing headwinds to growth.”