By the end of 2022, inflation in the euro area could reach 6.1 percent, the European Commission said. Back in February, Brussels predicted this figure to be 3.5 percent.
According to the European Commission, the war in Ukraine worsens the prospects of economic growth in the euro area and leads to a massive increase in inflation. In its spring forecast for the current year, presented on Monday, May 16, the Brussels agency expects GDP growth of the Eurogroup countries at 2.7 percent and inflation at 6.1 percent.
European Commissioner: the war in Ukraine hampers economic recovery in Europe
In February, before the Russian military invasion of Ukraine, Brussels predicted economic growth in the euro zone at 4.0 percent and an inflation rate of 3.5 percent. The war in Ukraine is blocking Europe’s economic recovery, European Commissioner for Economic and Financial Affairs Paolo Gentiloni said. According to him, the military conflict has led to further increases in energy prices and worsened supply problems. In this regard, inflation is expected to remain high for a long time.
The European Commission expects inflation to be 2.7 percent in 2023. Hence, the declared goal of the European Central Bank to keep this indicator at 2.0 percent will not be met.
Meanwhile, inflation in Germany may reach 6.5 percent this year and 3.1 percent next year, the forecast says. The European Commission also expects German GDP to grow by 1.6% in 2022 and by 2.4% in 2023. Back in February, Brussels predicted economic growth in Germany at 3.6% this year and 2.6% next year.