Regarding the economies of the euro area such as Germany and France, the EU-European Union expects the economy to recover strongly and the growth rate will reach 5%, but it is necessary to be cautious by revealing the forecast that high inflation will continue over the next year. I emphasized that there is.
The European Commission, the EU's executive body, announced its economic outlook once every three months on the 11th.
According to this, the growth rate of GDP and GDP for one year in 19 euro area countries was just 5% compared to the previous year, which is a significant improvement from last year's minus 6.4%, which was hit by the corona disaster. It is expected to do.
Also, regarding the future, it is necessary to be cautious about the re-expansion of infection, but the strong recovery of domestic demand will support the expansion of the economy, and it is expected to grow by 4.3% next year.
On the other hand, the inflation rate is forecast to be 2.4% this year and 2.2% next year, and the high growth rate will continue.
"Most of the high prices are due to temporary factors, and gas and electricity bills are expected to peak in the winter, but the global supply chain turmoil is long-term," said Gentiloni, a member of the European Commission. Inflation could rise further if it becomes more or more labor costs, "he stressed that he needs to be wary of the risks that high prices could lead to a downturn in the economy.