Today, the European Commission published a new set of economic forecasts for the euro area. The EC has slightly raised its GDP forecasts for 2023 and 2024, while raising inflation expectations in both years. It explained that the upward revision of inflation forecasts is due to persistent upward pressures on core prices.

Projections for 2023

GDP: 1.1% vs 0.9% previously

Inflation: 5.8% vs 5.6% previously

Core inflation: 6.1%

Unemployment rate: 6.8%

Projections for 2024

GDP: 1.6% vs 1.5% previously

Inflation: 2.8% vs 2.5% previously

Core inflation: 3.2%

Unemployment Rate: 6.7%