EC lowers Eurozone inflation, growth forecasts for 2024
(VOVWORLD) - The European Commission on Thursday lowered its economic growth and inflation forecasts for the Eurozone in 2024, warning that geopolitical tensions will increase uncertainty for the Eurozone’s economy.
 Ilustrative image (Photo: Xinhua/VNA) |
The EC forecasts Eurozone inflation will fall to 2.7%, but growth will not exceed a modest 0.8%. Since the beginning of this year, the European Central Bank has kept interest rates unchanged, but it is widely expected to begin cutting rates later this year in the face of slower consumer spending and a weakening Eurozone economy.
The Eurozone has been weighed down by the area's largest economy, Germany. The EC significantly downgraded its growth forecast for Germany to just 0.3% in 2024, down from its autumn prediction of 0.8%.
According to the EC, although a recession was avoided in the second half of 2023, the economic outlook in the first quarter of 2024 remains weak. Commission Executive Vice President Valdis Dombrovskis warned that "the global landscape remains highly uncertain" amid fears that the conflict in the Middle East could broaden beyond Israel and Gaza.