The EU lowered the economic expectations of the EU -regional economic expectations for further downward risks

Overseas Network, July 18th. The impact of international conflicts and its impact on energy and food prices prompted the EU's economic growth expectations in the euro zone in 2022 and 2023.

According to Agence France -Presse, in the past week, the exchange rate of the euro to the US dollar has fallen to the lowest level in 20 years, which has affected the entire EU. Due to geopolitical tensions, EU prices are surging historically, which especially affects the prices of basic food (edible oil, grain, etc.), natural gas, fuel, electricity and other raw materials, which will cause a heavy blow to families and enterprises.

The European Commission predicts that the gross domestic product growth in 19 countries in the euro zone will be only 2.6%in 2022, and only 1.4%in 2023, and the previous growth expectations are 2.7%and 2.3%, respectively. At the same time, the European Commission raised the inflation expectations of the euro zone in 2022 and 2023 to 7.6%and 4%, respectively, and the inflation expectations of the euro zone were 6.1%and 2.7%, respectively.

The European Commission believes that the euro zone economy should continue to develop, but the speed is much slower. If Russia's natural gas supply is completely interrupted, the situation may become worse because the EU still relies heavily on Russia's energy.

EU Economic Affairs Specialist Paul Titrony warned that due to the evolution of international conflicts and the prospects of natural gas supply, there is a great uncertainty and downward risk. The European Central Bank will tighten the monetary policy "faster than expected", which is necessary for curbing inflation. (Overseas Network-Paris-Lu Jia)

- END -