November 12, 2022
1 min read

Most EU countries will be in recession in fourth quarter

The forecast projects real GDP growth in both the EU and euro area at 0.3 per cent — well below the 1.5 per cent and 1.4 per cent expected in the previous forecast from July…reports Asian Lite News

European Commissioner for Economy Paolo Gentiloni warned that the outlook for next year has “weakened significantly”, and that most European Union (EU) countries will be in recession in the fourth quarter of this year.

The EU economy is now “at a turning point” Gentiloni said while addressing a press conference in Brussels on Friday shortly after the European Commission announced that it had slashed its forecast for economic growth next year.

The European Commission’s autumn forecast predicted falling economic output in the last three months of this year and the first months of 2023, reports Xinhua news agency.

Elevated uncertainty, high energy price pressures, the erosion of households’ purchasing power, a weaker external environment, and tighter financing conditions are expected to tip the EU, the euro area and most member states into recession in the last quarter of 2022.

For 2023 as a whole, the forecast projects real GDP growth in both the EU and euro area at 0.3 per cent — well below the 1.5 per cent and 1.4 per cent expected in the previous forecast from July.

“The surge in energy prices and rampant inflation are now taking over and we are facing a very difficult period both from a social and economic point of view,” Gentiloni stressed.

“After a surprisingly strong first half of the year, the EU economy lost momentum in the third quarter, and recent survey data point to a contraction for the winter,” he said.

In addition, inflation has continued to rise faster than expected.

Accelerating and broadening price pressures in the first ten months of the year have moved the expected inflation peak to the fourth quarter of this year, and lifted the yearly inflation rate projection to 9.3 per cent in the EU and 8.5 per cent in the euro area.

Inflation is expected to decline in 2023, but to remain high at 7.0 per cent in the EU, and 6.1 per cent in the euro area.

ALSO READ-Zelensky welcomes EU’s support package

Previous Story

India-born Venki bags British Order of Merit

Next Story

Setback for Shehbaz in defamation case in UK

Latest from -Top News

Trinidad Eager to Deepen Ties with India: Envoy

Trinidad and Tobago, home to a large Indian-origin population—many of whom are now in their fifth and sixth generations—offered a unique cultural resonance to the visit….reports Asian Lite News Prime Minister Narendra

Labour peer David Lipsey found dead

In the House of Lords, Lord Lipsey was known for his dedication to social justice and his commitment to improving the lives of others The Labour peer, Lord David Lipsey, has been

UK Space Agency set to clean up space debris

Efforts to clean up space debris mark a pivotal step in the UK’s efforts to protect vital space infrastructure and ensure the long-term safety of the orbital environment The UK Space Agency

UK shuts both its Afghan resettlement schemes

According to the Ministry of Defence, the Afghan Relocations and Assistance Policy has fulfilled its initial objective of supporting Afghans who worked alongside the UK military The government has announced the closure
Go toTop

Don't Miss

Russia-Ukraine peace talks on hold

Ukrainian and Russian negotiators held the latest round of face-to-face

Ukraine steps closer to EU candidate status

Candidate status is the first official step towards EU membership