EU warns of ‘difficult months’ as eurozone faces recession

The EU warned Friday the eurozone was set to fall into recession this winter as Brussels hiked inflation forecasts for 2022 and 2023 on the back of high energy prices.

Europe is reeling from the economic shockwaves unleashed by Russia’s war on Ukraine, which have fuelled a spike in energy costs and hit the wallets of consumers around the continent.

The EU’s executive arm said increased uncertainty and prices “are expected to tip” the eurozone and most of the bloc’s member states into recession in the last quarter of this year.

Overall eurozone GDP growth for 2022 was put at 3.2 percent after early strong months of the year.