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The European Union cut its forecast for euro zone growth in 2022 and almost doubled its inflation estimate, according to a new draft of projections.

In the first forecast since the outbreak of war in Ukraine, the European Commission will indicate that gross domestic product will grow by 2.7% in 2022 and 2.3% in 2023, according to a draft seen by Bloomberg. That’s down from February’s readings of 4% and 2.7%.

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On inflation, the commission forecasts rates of 6.1% and 2.7% for this year and next, compared to previous forecasts of 3.5% and 1.7%, respectively.

The forecast is not finalized and may still change before being released by the EU executive on Monday.

Russia’s invasion of Ukraine and the sanctions imposed in response have clouded the outlook for the global economy by driving up energy prices and straining supply chains that were already under strain. pandemic shock. The Eurozone is one of the most affected regions due to its dependence on Russian energy and its proximity to the conflict.

The rebound in virus restrictions should now be softer than initially thought, while inflationary pressures are still on the rise. Consumer price growth hit a new record high last month, hitting nearly four times the European Central Bank’s 2% target.

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