The short-term forecast for economic growth and inflation in the eurozone has deteriorated, according to recent estimates and analyses, said the Eurogroup in a statement following their meeting on Monday.

According to recent projections and indicators, short-term growth and inflation forecasts will worsen if gas supply interruptions continue.

A preliminary estimate show that annual inflation in the eurozone, which consists of 19 member states of the European Union, grew to a record 10% in September from 9.1% a month earlier.

Following the meeting, Klaus Regling, the head of the European Stability Mechanism (ESM), stated that markets anticipate a contraction in the euro zone’s economy over the coming quarters and that, depending on energy supplies, a recession in the area next year cannot be ruled out.

Close coordination of economic policy inside the eurozone, according to the Eurogroup, is also necessary. Authorities in the area should focus on preventing further acceleration of inflation as a result of rising energy prices, which could harm the economy.

source: ec.europa.eu