EU issues bleak growth forecast

The European Union’s executive commission slashed its forecast for economic growth next year, saying the 19 countries that use the euro currency will slide into recession over the winter as peak inflation hangs on for longer than expected and high fuel and heating costs erode consumer purchasing power.

The European Commission’s autumn forecast released Friday predicts falling economic output in the last three months of this year and the first months of 2023. It says high energy prices, a rising cost of living, higher interest rates and slowing global trade “are expected to tip the EU, the euro area and most member states into recession in the last quarter of the year.”

The growth forecast for all of 2023 was lowered to 0.3% from 1.4% expected in the previous forecast from July.

“The EU economy is at a turning point,” said Paolo Gentiloni, European commissioner for economy.