EU Commission 2022 Eurozone GDP Predicts a Greater Decline in 2023
The European Commission forecast disclosed on Friday, 11th November, that the Eurozone Gross Domestic Product will rise more than anticipated in 2022 and will also see a significant decline more than expected in 2023.
However, the 2023 downturn will only affect eurozone jobs and public finances. According to the EU commission’s forecast, Eurozone Gross Domestic Product will elevate to 3.2% in 2022, more than the 2.7% mark initially predicted in January.
In 2023 it will experience a substantial downturn to 0.3%, significantly below the 1.4% forecast made in July. After which it will elevate steadily back towards 1.5% come 2024.
Eurozone Shows Inflation, Public Debt, and Budget Deficit Forecast
- According to the forecast, the unemployment rate in the Eurozone will be 6.8% in 2022, climb to 7.2% in 2023, and then decline once more to 7.0% in 2024.
- The combined budget deficit for the Eurozone is predicted to reach 3.5% of Gross Domestic Product in 2022, then increase to 3.7% in 2023 and decrease once more to 3.3% in 2024.
- In Q4 2022 and Q1 2023, the quarterly Gross Domestic Product for the Eurozone is expected to decrease, but in Q2 2023, an increase is anticipated.
- Inflation in the Eurozone is expected to reach 8.5% in 2022 before dipping to 6.1% in 2023 and 2.6% in 2024.
- The total public debt for the Eurozone is predicted to decrease to 93.6% of the Gross Domestic Product in 2022 and in 2023, it will move to 92.3%, in 2024 it will reduce to 91.4%.
Euro Economy Expected to Shrink as Energy Price Soar From Ukraine War
The European Economic Commissioner, Paolo Gentiloni, had said in a statement that the European nation is moving toward the last months of the year in which Russia had issued another war against the continent.
Gentiloni commented that the European economy has continually demonstrated exceptional strength in withstanding the repercussions caused by the Russian and Ukraine war. He added that although the economy is doing its best to remain stable, the rising energy costs and skyrocketing inflation is becoming more apparent and has started taking their toll not just economically but financially and socially.
He ended his statement by saying the country should brace itself for very challenging conditions in this trying time. Aside from the highly anticipated negative Q2 Gross Domestic Product that may yield a significant recession, the Eurozone forecasts also indicated in its prediction reports that the unemployment rate, and the total eurozone debt, and deficit will not experience too much of a decline, or none at all.