The European Union Commission revised its forecasts for the course of the regional economy. In its new report, the Commission announced the year-end growth forecast for the Eurozone as 0.8%. Authorities made a downward revision due to the contraction in domestic demand despite employment remaining strong as inflation fell.
Authorities, who expected 1.4% growth for 2024 in the previous report, have now revised this figure to 1.3%. The decline in energy prices and the vibrant tourism sector could not prevent negative expectations.
The European Commission expects the German economy to shrink by 0.4% this year. However, according to the report, the negative trend for the industrial giant will end in 2024. According to the report, Germany will grow by 1.1% next year.
Inflation Expectations Dropped!
The EU Commission touched upon the predictions regarding inflation after growth in its expectation report. Authorities, who have made a downward revision regarding economic growth, are now more hopeful for inflation. The Commission reduced its year-end inflation forecast for the euro area from 5.8% to 5.6% points.
The CPI forecast for 2024 increased from 3.1% to 3.2%.