Europe’s economy shrinks in 2022

Data in the Commission’s spring economic forecast Europe (EC) shows that GDP growth in both the EU and the euro area will only reach 2.7% in 2022 and 2.3% in 2023, down from 4% and 2.8%, respectively, compared with the previous version. Winter 2021 economic forecast published. In the euro area alone, this decrease was 2.7%.

The main factor driving down GDP growth forecasts in European countries is the unending volatility in energy prices.

Rising energy prices have led to an increase in prices of many commodities, leading to a euro zone inflation forecast of 6.1% in 2022, before falling to 2.7% in 2023.

The inflation rate is expected to peak at 6.9% in the second quarter of this year and gradually decline thereafter. The adjusted inflation rate according to the EU economic spring economic forecast increased by 3.5% compared to the winter economic forecast of 2021.

Although GDP growth is forecast to decrease, inflation will increase, but the labor market in EU countries will improve in 2022. Accordingly, the employment rate in EU countries is forecasted to increase by 1. 2% thanks to the economic recovery from the fourth quarter of 2021.

* Invite readers to watch programs broadcast by Vietnam Television on TV Online and VTVGo!