EU Says Recession Is Here and Inflation Shock Will Linger On
- Officials slash euro-zone economic growth predictions for 2023
- Inflation hasn’t yet peaked, European Commission says
Forecasts show that Germany, Europe’s biggest economy, will shrink more than any other euro-zone member in 2023.
Photographer: Krisztian Bocsi/Bloomberg
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The euro zone faces a grim winter as a recession bites just as double-digit inflation grips the region and war rages nearby, according to the European Commission.
European Union officials in Brussels on Friday slashed their forecast for growth next year, predicting barely any expansion, and raised all their projections for consumer prices. They reckon the economy is now shrinking and will keep contracting during the first quarter.