The EU cuts its growth forecasts for the eurozone

The European Commission lowered its forecast for economic growth in the eurozone to 2.6% this year, just below its forecast of 2.7% in May, and also cut growth next year to 1.4% from 2.3% in May. As for the 27 European Union countries, the forecast for economic growth is unchanged at 2.7% this year, but it has fallen to 1.5% in 2023, compared to 2.3% in the May forecast. The European Commission raised its estimate for eurozone inflation to 7.6% this year before slowing to 4.0% in 2023, and Germany, the EU's largest economy, will see growth slow to 1.4% this year and 1.3% in 2023.