The European Commission sharply cut its eurozone growth forecast for 2022 to 2.7 per cent, blaming skyrocketing energy prices caused by Russia’s invasion of Ukraine.
EU executive vice president Valdis Dombrovskis says there is no doubt that the EU economy is going through a challenging period due to Russia’s war against Ukraine, and they have downgraded the forecast accordingly.
The EU warned that the course of the war was highly uncertain and that the risk of stagflation punishing inflation with little or no growth remained a real risk going forward.