- Analytics
- News and Tools
- Market News
- EU cuts Euro-Area GDP forecast, sees 7.6% inflation, draft shows – Bloomberg
EU cuts Euro-Area GDP forecast, sees 7.6% inflation, draft shows – Bloomberg
“The euro area’s rebound from the pandemic will be weaker than anticipated while inflation will be faster because of Russia’s war in Ukraine, according to draft projections by the European Commission,” per Bloomberg.
More details
With surging prices crimping demand and the danger of winter energy shortages draining confidence, gross domestic product is likely to advance 2.6% this year and 1.4% in 2023 -- down from May predictions for gains of 2.7% and 2.3%, according to new forecasts from the European Union executive arm seen by Bloomberg.
Inflation, already at a record that’s more than four times the European Central Bank’s 2% target, is now seen at 7.6% in 2022 and 4% next year, up from 6.1% and 2.7%.
The predictions may still change before they are officially published Thursday.
Some economists see a recession in Europe as inevitable, even without the Kremlin halting energy supplies, with inflation also likely to remain elevated. That’s complicating the task of the ECB, which is only just embarking on a first interest-rate increase in more than a decade.
FX implications
EUR/USD remains pressured around the lowest levels since December 2002 by the press time. The major currency pair was last seen around 1.0057.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
