Growth in the European economy will likely weaken due to the war in Ukraine, but there will be no recession, the EU believes.

“Our current assessment is that the consequences of the war in Ukraine will lead to a significant decline in EU economic growth, but not a recession,” EU Commission Deputy Valdis Dombrovskis said on Monday.

Ahead of Russia’s invasion of Ukraine, Dombrovskis believed that the eurozone economy would grow significantly as the effects of the corona pandemic subsided. 

The war in Ukraine will probably downgrade that forecast when new estimates are published on May 16.

The war in Ukraine has already caused inflation in the eurozone to rise to a record 7.5% in March compared with the same time last year.

Source: © NTB Scanpix / #Norway Today / #NorwayTodayNews

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