European Commission's Economic Outlook

Valdis Dombrovskis, Executive Vice-President and Commissioner for Trade at the European Commission, shared insights on Tuesday regarding the economic forecasts for EU member states. Dombrovskis noted that while deficits are expected to narrow slightly this year, debt ratios will continue to rise. He emphasized the necessity for sustained and gradual debt reduction strategies in line with the new economic governance framework.

The autumn economic forecast from the European Commission points towards a gradual resumption of growth, continued reduction of inflation, and a robust labor market performance. However, Dombrovskis cautioned about the high uncertainty that persists and is expected to continue into the next year. Additionally, he underscored the importance of continuing to support Ukraine's economy, which has shown remarkable resilience but will still require external assistance until 2025.