Eurozone Set for Weaker Growth as High Inflation, Interest Rates Bite, EU Says

The eurozone is likely to grow at a slower pace than previously expected due to cost-of-living pressure and weakness in global trade, with the conflict in the Middle East adding to uncertainty, according to fresh forecasts set out by the European Union’s executive Wednesday.

The 20-member currency bloc is expected to grow at 0.6% in 2023 and 1.2% in 2024, revised down from previous estimates of 0.8% and 1.3% for each year respectively, the European Commission said in its autumn forecasts.