EU Commission cuts 2024 euro zone growth forecast

The euro zone economy will grow slower than expected this year. According to the EU Commission’s forecasts, the gross domestic product in the 20 countries sharing the euro currency will increase only 0.8% in 2024 rather than 1.2% it expected last November, but it will still be up from a 0.5% rise in 2023. In 2025, economic growth should accelerate to 1.5% (the previous forecast was 1.6%).

The EU’s biggest economy, Germany, will be the biggest drag on euro zone growth this year and next, with growth of only 0.3% in 2024 and 1.2% in 2025, after a 0.3% recession last year.

The second biggest economy, France, will also grow more slowly in 2024 at 0.9% rather than 1.2% seen in November, and the third biggest economy, Italy, will expand only 0.6% rather than 0.9%.

At the same time, the Economic Commissioner Paolo Gentiloni cautioned that uncertainty is extremely high because of geopolitical tensions and the risk of a further broadening of the crisis in the Middle East.