EU Slashes 2024 Growth Forecasts on High Inflation and Economic Headwinds

EU growth prospects for 2024 downgraded to 0.9% from previously expected 1.3%, with similar adjustment for euro area growth forecast (0.8% from 1.2%)
Inflation rates now expected to retreat faster than predicted, declining from 6.3% in 2023 to 3.0% in 2024 in EU
Gradual economic resurgence anticipated in 2nd half of 2024, driven by falling inflation, higher real wages, strong labor market
Risks remain, including phasing out energy supports, geopolitical tensions, conflicts affecting trade
Disparities across EU members, with small economies forecast 2-3% GDP growth in 2024, larger economies facing more headwinds