The European Commission has published its summer economic forecast, which emphasizes that the situation around Ukraine, geopolitical tensions and tightening of monetary policy continue to pose major risks and create uncertainty in the economy of the European Union. The document indicates that the conflict in Ukraine and broader geopolitical tensions remain sources of uncertainty and may negatively affect economic activity. The tightening of monetary policy is also seen as a potential risk, and it is noted that this may put more pressure on the economy than expected. However, the European Commission recognizes that such a policy can contribute to a faster decline in inflation, which in turn can lead to an increase in real incomes. In addition, the document notes that growing climate risks, such as extreme weather conditions, forest fires and floods, also have an impact on the economic prospects in the region.
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