(VOVWORLD) - The European Commission is predicting the eurozone will slide into recession in the winter, as inflation continues to rise, according to the latest economic forecast released on Friday.
 Illustrative image (Photo: Xinhua/VNA) |
Broadening price pressures are expected to have moved the inflation peak to year-end, it added.
Europe is reeling from the economic shockwaves unleashed by Russia's special millitary operation on Ukraine that has fuelled a spike in energy costs and hit the wallets of consumers around the continent.
The increased uncertainty and costs "are expected to tip" the eurozone and most of the bloc's member states into recession in the last quarter of this year, according to the forecast.
The contraction of economic activity is set to continue in the first quarter of 2023. Growth is expected to return to Europe in spring, the European Commission said, adding that "with powerful headwinds still holding back demand, economic activity is set to be subdued, with GDP growth reaching 0.3 percent in 2023."
It said eurozone inflation was expected to stand at 8.5 percent for 2022, a point higher than earlier forecast, and 6.1 percent in 2023, two points higher than predicted previously.