EU Lowers Economic Growth Forecast to 0.9% for This Year

Downgraded from 1.3% to 0.9%

The European Union (EU) has downgraded its economic growth forecast for this year from 1.3% to 0.9% in just three months.

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On the 15th (local time), the EU Commission projected in its "European Economic Forecast" winter report that the economic growth rate for the 27 EU countries this year will be 0.9%, and 0.8% for the Eurozone (20 countries using the euro).

This is 0.4 percentage points lower than the 1.3% (EU) and 1.2% (Eurozone) forecasted in the spring report last November.

Next year's economic growth rates are expected to be 1.7% (EU) and 1.5% (Eurozone), respectively.

The report analyzed that "after narrowly avoiding a technical recession in the second half of last year, the economic outlook for the first quarter of 2024 remains weak."

However, it forecasted that "economic activity is expected to gradually pick up this year," adding that "inflation will continue to ease, and real wage growth along with a flexible labor market situation will support a rebound in consumption."

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