European Commission cuts eurozone growth forecast for 2024

By Tuba Ongun

The European Commission revised downwards its 2024 economic growth forecast for both the eurozone and the EU with subdued growth last year, according to its Winter Interim Forecast released on Thursday.

Pointing that 2023 growth was dragged down by reduced household consumption, surging borrowing costs, the partial withdrawal of fiscal support, and falling external demand, the commission revised down euro area economic growth by 0.4 percentage points to 0.8% in 2024.

The gross domestic product in the euro area is projected to rise 0.9% this year, down from the previous forecast of 1.3%.

"In 2025, economic activity is still expected to expand by 1.7% in the EU and 1.5% in the euro area," read the report.

The European Commission foresees inflation in the eurozone will decrease from 5.4% last year to 2.7% this year and to 2.2% next year, largely driven by declining energy prices.