EU

Inflation to peak later and persist for longer, EU forecasts

European Commission has cut the euro-area economy growth forecast for 2023 to 1.4% from 2.3%

Economic activity in the remainder of the year is expected to be “subdued,” according to the European Commission. Picture: Getty

Europe’s economy now faces a “significantly slower” outlook as well as a bigger and more enduring cost-of-living shock than just two months ago, the European Commission has said.

Such are the headwinds posed by fallout from Russia’s war in Ukraine that the Brussels-based executive of the European Union shaved almost a whole percentage point off its forecast for 2023 in new projections published today.

The European Commission has cut the euro-area economy growth forecast to ...