BusinessEurope published autumn macroeconomic forecast for the EU

The Confederation of European Employers' Unions BUSINESSEUROPE published the autumn macroeconomic forecast for the EU. According to the estimates from member organizations, the forecast of real GDP year-on-year growth for this year in th EU is 2.7%. However, the outlook for the next year is downgraded to 0.5 % from the summer estimate of 2.1 %. Inflation in the EU is expected to be 8,8 % this year, easing slightly to 5,4 % next year.

BUSINESSEUROPE adds that even this disappointing outlook will depend upon no further increases in energy prices, a further easing of supply chain pressures, and policies that respond to the energy price shock in a timely, comprehensive, and well-balanced way.

In recent days, the Confederation of Industry of the Czech Republic has also updated its forecast. The estimate of year-on-year real GDP growth is around 1.9 % for this year, and around 0.9% for next year. Similarly to the BUSINESSEUROPE outlook, our prediction is associated with the risk of a significant downward revision in case the current high energy prices persist and a sufficient solution for all companies is not adopted.