Citigroup cut growth estimates in the eurozone on Friday, saying the region’s plan to break free from Russian energy imports could hold back its economy for years, and halt the rapid recovery from the pandemic.
Citi expects eurozone GDP in 2022 to average 2.2%, lower than previous estimates of 3.3%.
For 2023, it expects growth of 2.6%, compared to the 2.8% previously expected.
“Recent geopolitical developments are likely to reduce eurozone exports, squeeze real household incomes, negatively affect confidence and therefore business investment, and disrupt production processes,” said Citigroup economist Christian Schulz.
The Commission announced its plans to reduce the EU’s dependence on Russian gas by two-thirds this year and to end its dependence on Russian fuel supplies (well before 2030).
Source: Capital
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