8/1/22, 9:52 AM EU hikes inflation forecast to 8.3% as Ukraine war drives soaring prices
https://www.cnbc.com/2022/07/14/eu-hikes-inflation-forecast-to-7point6percent-as-russia-ukraine-war-fuels-price-increases.html 4/7
Italy in focus
The commission also revised down most of its growth expectations in its summer economic
forecasts, published Thursday.
In May, it said it expected a growth rate of 2.7% this year and 2.3% next year for both for the EU
and the euro area.
Now, it now expects Europe's economy to grow by 1.5% next year, while the euro zone is seen
expending by 2.6% in 2022 and 1.4% in 2023.
Europe has been big hard by Russia's invasion of Ukraine. At the start of the year, some were
expecting the euro area to grow at more than 4% — a faster pace than the United States.
However, tough sanctions on Russia, a reduction in flows of natural gas, major food supply chain
issues and a slew of other factors have shaken the economic prospects of the bloc.
Many economists are pricing in a recession for the euro zone either later this year or in 2023, but
— for now at least — European officials are refusing to talk about the possibility of a recession.
Italy is once again in focus amid the possibility of fresh political chaos.
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