European Central Bank (ECB) Vice President Luis de Guidos said today that rising inflation will continue to have an impact on the EU, but the Union’s economy will not enter a recession due to the Russian invasion of Ukraine.
“Inflation was already high and will rise further; but we will not enter a recession,” de Guidos said in an interview with Spanish television network Antena 3. “Even in the worst case scenario, the European economy is not going to enter a recession, “he assured.
Asked if this could change depending on how long the war will last, de Guidos said it was “very difficult” to make a prediction and that only estimates could be made based on the evolution of raw material prices.
The ECB forecast last week that the eurozone economy would grow by 0.5% lower this year compared to initial estimates due to the war in Ukraine, but would remain at 3.7% and 2%, respectively. 8% in 2023.
However, inflation is estimated at 5.1% on average in 2022 (well above the 2% target) and is estimated to fall to 2.1% in 2023, according to the European Central Bank forecast.
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