The European economy 2022 has entered a much more difficult phase – that is the main conclusion of the autumn economic forecast for the European Union, and the euro zone in 2022, released on Friday.

European economy collapse? 

“The European economy is at a turning point. After a very successful first half of this year, the European economy lost its momentum during the third quarter, and data from recent analysis suggest a decline this winter,” European Commission (EC) economic member Paolo Gentiloni said at a press conference in Brussels presenting the forecast.

“The European economy is expected to grow by only 0.3 percent in 2023. Then there will be a gradual recovery, allowing for 1.6% in 2024. Second, inflation has continued to rise faster than anticipated. But we believe that we are very close to reaching a peak in inflation, probably by the end of the year,” the Commissioner continued.

He said that overall inflation in the EU should reach 9.3% and 8.5% in the eurozone. Then it will slow down a little next year, 7% in the EU, and 6.1% in the eurozone. Inflation will fall more markedly in 2024. Probably to 3.0% and 2.6%, respectively.

According to the EC, the EU is one of the most vulnerable developed economies because of its geographical proximity to the area of the Ukrainian conflict and its strong dependence on gas imports from Russia.

“The energy crisis undermines the purchasing power of households and affects production,” Brussels stated.

Earlier we reported that the dollar is getting stronger against most currencies.