BAKU, Azerbaijan, June 14. The EU’s real GDP in 2022 is projected to grow less than 3 percent, which is down from the 4-percent decline forecast made before the Russia-Ukraine conflict, Trend reports via the European Investment Bank (EIB).
Meanwhile, the real GDP growth in Europe in 2021 stood at 5.3 percent. According to the EIB’s estimates as of May 9, 2022, the EU’s GDP growth in 2022 will be at 2.7 percent. The forecast as of February 7 assessed this indicator at 3.9 percent.
Moreover, the forecast for the inflation rate in Europe was revised up 2.9 percentage points - from 3.9 percent in February to 6.8 percent in April 2022, the EIB said.
“The EIB’s economic models show that rising inflation could push more Europeans under the poverty line. A recession could happen, and further trade disruptions or increased economic sanctions would increase the risk for the European economy,” the report said.
However, as the EIB noted, the inflation rate in the EU in 2023 is expected to decrease as a result of the monetary policy tightening started in early 2022 or expected by year-end.
---
Follow the author on Twitter: @mariiiakhm