EU growth forecast cut as war in Ukraine fuels inflation
by Larry Elliott Economics editor from Economics | The Guardian on (#5Z9GK)
European Commission downgrades growth prospects from 4% to 2.7%, while economy slows rapidly in China
The growth prospects for the EU have been revised sharply downwards after Russia's invasion of Ukraine put paid to hopes of a strong and sustained recovery from Covid-19 over the next two years.
Rocketing energy prices as a result of the conflict have pushed up inflation and increased economic headwinds during a period when they were expected to subside, the European Commission said in its latest forecasts.
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