EU expects economic growth to slow significantly in the second half of the year, annual inflation will hit a record high

　　China News Service, Brussels, July 14 (Reporter De Yongjian) The European Union released the European Economic Summer Outlook Report on the 14th, saying that affected by the situation in Russia and Ukraine, the EU economy has fallen into the dilemma of "low growth and high inflation". In 2022, the average inflation rate will hit a record high.

　　On the same day, the European Commission released the European economic summer outlook report as usual, predicting that the EU economy and the euro zone economy will grow by 2.7% and 2.6% respectively in 2022, and the EU economy and the euro zone economy will grow by 1.5% and 1.4% respectively in 2023.

　　Compared with the European Economic Spring Outlook Report released in May this year, the EU economic growth is expected to remain unchanged (2.7%) in 2022, and the euro area economic growth is expected to drop slightly from 2.7% to 2.6%, but the EU economic growth in 2023 is expected to be expected from 2.7%. 2.3% fell to 1.5%, and the euro zone economic growth forecast fell from 2.3% to 1.4%.

　　The report quoted European Commission Executive Vice President Dombrovskis as saying that the EU's economic growth will slow significantly in the second half of this year until 2023 to regain its momentum.

In the face of high inflation and a tightening financing environment, EU fiscal policy should be both prudent and moderate, while reducing dependence on Russia's energy supply.

　　On the other hand, the report predicts that the average inflation rate of the EU and the euro area will be 8.3% and 7.6% respectively in 2022, which will both hit a record high; %.

　　Regarding the slowdown of the EU's economic growth, the report said that due to its high dependence on Russia's energy supply, the development of the energy market can easily affect the EU's economy; affected by the situation in Russia and Ukraine, the current energy and food prices have risen, coupled with weak global economic growth, and external demand has declined. The economic development of the EU faces many unfavorable factors.

　　For the average inflation rate in 2022 to hit a record high, the report pointed out that since the second quarter of this year, energy prices and food prices in the EU have continued to rise, and they are being transmitted to other industries such as the service industry. Affected by this, the EU inflation rate has increased from 7.8 in March this year. % rose to 8.8% in May, and euro zone inflation rose to 8.6% in June from 7.4% in March this year.

　　The report predicts that gas prices and electricity prices in the EU will rise further into the third quarter, pushing EU and euro zone inflation to 8.4% in the third quarter, before falling back to below 3% by the end of 2023.

　　The report said that the future development of the EU economy and inflation will largely depend on the supply situation of natural gas.

If natural gas prices usher in a new round of increases, it will not only curb the EU's economic growth and push up the inflation rate, but may also lead to further tightening of the EU's financing environment and affect the EU's financial stability; in addition, the possibility of a new round of COVID-19 outbreak in the EU cannot be ruled out. sex, which will further hit the EU economy.

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