EC lowers Eurozone inflation, growth forecasts for 2024
(VOVWORLD) -The European Commission (EC) on Thursday lowered its economic growth and inflation forecasts for the Eurozone in 2024, warning spreading geopolitical tensions will increase uncertainty for the single-currency area's economy.
 Consumers shop at a supermarket in Frankfurt, Germany. Photo: Xinhua/VNA
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The EC forecasts Eurozone inflation to drop to 2.7%, but growth to reach a modest level of 0.8%. Since the beginning of 2024, the European Central Bank has kept interest rates unchanged, but it is widely expected to begin cutting rates later this year in the face of slowing consumer prices and a weakening Eurozone economy.
The Eurozone has been weighed down by the area's largest economy, Germany. The commission significantly downgraded its forecast for Germany, expecting growth of only 0.3% in 2024, down from its autumn prediction of 0.8%.
According to the EC, although the risk of recession was avoided in the second half of 2023, the EU economic outlook in the first quarter of 2024 remain weak. Commission executive vice president Valdis Dombrovskis warned "the global landscape remains highly uncertain" amid fears that the conflict in the Middle East could broaden beyond Israel and Gaza.