EU to cut economic growth forecast, revise inflation outlook upwards

Brussels, July 12 (FN Agency) The European Commission will revise its outlook for the EU’s economic growth downward both for this and next year as inflation continues to “surprise on the upside,” Executive Vice-President Valdis Dombrovskis said Monday. “What we see is that economic growth is proving quite resilient this year. Still one can expect some downwards revision and even more so for the next year because of many uncertainties and risks,” he told reporters ahead of the eurogroup meeting.

“Unfortunately, inflation continues to surprise on the upside, so it’s once again going to be revised upwards,” the EU commissioner for trade said further. The EU’s executive branch will present its revised economic forecast this week. Dombrovskis said finance ministers meeting in Brussels were moving to an overall more prudent fiscal stance. The commission cut the growth forecast for 2022 in May to 2.7% and 2.3% for 2023 from 2.7% forecast in February. It projects the rise in consumer prices in the 19-member eurozone to reach 6.1% this year before sliding back to 2.7% in 2023.