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The European Union will again reduce the economic growth forecast of the bloc for this year, while inflation is expected to take off again.
However, Brussels insists there are still no signs that a recession is on the way.
Valdis Dombrovskis, vice president of the European Commission: We see that economic growth is proving quite resistant this year. A downward revision can be expected, even more so for next year, while inflation, unfortunately, continues to surprise on the rise. It should be reviewed again.
Consumer prices in the Eurozone, which consists of European Union economies such as France and Germany, started to increase by 5% in December compared to the same period a year ago, and have not stopped growing.
Initially, energy prices contributed to this phenomenon, and then food prices as well. This situation increased the pressure on the European Central Bank to act on inflation to keep interest rates extremely low to stimulate an economic recovery.
However, inflation was not just an EU problem. Even in the United States, consumer prices are currently rising at the fastest pace in 39 years; on the other hand, countries like Britain, Turkey and Brazil have faced the highest inflation for years.
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