European Commission downgrades eurozone growth forecasts as high inflation and weak demand weigh on outlook

The European Commission has revised down eurozone GDP growth forecasts for 2023 and 2024 due to high inflation and weaker consumer demand.
Germany's economy is projected to contract by 0.4% in 2023, making it the only major economy expected to shrink this year.
Persistently high inflation across the eurozone, forecast at 5.6% in 2023, is severely impacting domestic consumption and demand.
The eurozone outlook has deteriorated with growth now expected to reach just 0.8% in 2023 and 1.3% in 2024.
The manufacturing and export-oriented sectors in Germany have been particularly affected by the impacts of the Ukraine war and high energy prices.