Euro-Area Economy Is Losing Momentum, EU Says, Slashing Outlook
- GDP to expand 0.8% in 2024, down from 1.2% in prior prediction
- Inflation to slow to 2.7% this year, matches ECB estimate
A jet engine plant in France.
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The euro-area economy is entering 2024 on a weaker footing than previously expected, according to new European Union forecasts that anticipate another year of subdued growth.
Gross domestic product in the currency bloc will accelerate only slightly to 0.8% this year after 0.5% in 2023, the European Commission said in a report Thursday. In November, it had predicted a more marked improvement to 1.2%. It also cut its 2025 forecast to 1.5%, from 1.6%