The European Commission announces its inflation forecast for Turkey

The European Union Commission has lowered its economic growth expectation for the Eurozone to 0.6% this year due to high inflation, tightening monetary policy, and a contraction in demand. The report also revealed that growth in Turkey was expected to be 4.2% in 2023, 3.5% in 2024, and 4% in 2025, with inflation forecasted to be 55.4% this year, 53.6% in 2024, and 22.9% in 2025.

The “Autumn 2023 Economic Forecasts for Europe” report by the European Union (EU) Commission was published. The report, titled “Moderate recovery after a challenging year,” predicts that the EU economy will grow by 0.6% in 2023 and 1.3% in 2024, while the Eurozone economy will grow by 0.6% in 2023 and 1.2% in 2024.

In the Commission’s previous “Summer” report, the EU was expected to grow by 0.8% this year and 1.4% next year, with the Eurozone growing by 0.8% this year and 1.3% next year.

With the latest report, the growth forecasts for the EU and the Eurozone in 2023 and 2024 was downwardly revised. The report predicts that in 2025, the EU will grow by 1.7%, and the Eurozone will grow by 1.6%.

The report mentions that Germany is expected to contract by 0.3% this year and grow by 0.8% next year. France is forecasted to grow by 1% this year and 1.2% next year. Italy is expected to contract by 0.7% this year and grow by 0.9% next year, while Spain is forecasted to grow by 2.4% this year and 1.7% next year.

The report points out that this year, the economies of 10 EU member states will shrink, with Estonia contracting by 2.6%, Ireland by 0.9%, Hungary by 0.7%, Luxembourg by 0.6%, Sweden and Austria by 0.5%, Lithuania and the Czech Republic by 0.4%, Germany by 0.3%, and Latvia by 0.2%.