The European Union is now expecting a recession, European Commission officials said Friday. The commission's economic forecast for fall 2022 predicted growth of just 0.3 percent, which is a cut of more than one percent from estimates back in July, Politico reports.
Officials believe the economy is shrinking and will continue to do so through the first quarter of 2023, fueled in large part by an "energy-driven cost-of-living" crisis resulting from the nearby war, Bloomberg writes. "Amid elevated uncertainty, high energy price pressures, erosion of households' purchasing power, a weaker external environment, and tighter financing conditions are expected to tip the EU, the euro area, and most member states into recession," the commission wrote. Germany, Latvia, and Sweden are actually expected to have negative growth in 2023.
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