Most EU countries set to slide into recession in Q4 – World

European Commissioner for Economy Paolo Gentiloni speaks during the press conference on the 2022 autumn economic forecast in Brussels, Belgium, November 11, 2022. [Photo/Xinhua]

BRUSSELS – European Economics Commissioner Paolo Gentiloni warned on Friday that the outlook for next year has “considerably weakened” and that most countries in the European Union (EU) will be in recession in the fourth quarter of this year. year.

The EU economy is now “at a turning point”, said Gentiloni.

He was addressing a press conference in Brussels shortly after the European Commission announced it had cut its forecast for economic growth next year.

The European Commission’s autumn forecast predicted a decline in economic output in the last three months of this year and the first months of 2023. High uncertainty, strong pressures on energy prices, erosion of the power of Household buying, weaker external environment and tighter financing conditions are expected to tip the EU, Eurozone and most member states into recession in the last quarter of 2022.

For 2023 as a whole, forecasts call for real GDP growth in the EU and eurozone at 0.3%, well below the 1.5% and 1.4% expected in the previous July forecast.

“Soaring energy prices and galloping inflation are now taking over and we are going through a very difficult period both from a social and economic point of view”, underlined Mr. Gentiloni.

“After a surprisingly strong first half, the EU economy lost momentum in the third quarter, and recent survey data points to a contraction for the winter,” he said.

In addition, inflation continued to rise faster than expected. Accelerating and widening price pressures in the first ten months of the year shifted the expected peak of inflation to the fourth quarter of this year and raised the projection for the annual inflation rate to 9.3 % in the EU and 8.5% in the euro area. Inflation is expected to decline in 2023, but remain high at 7.0% in the EU and 6.1% in the Eurozone.