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June 27
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The European Union lowered its economic growth forecasts amid the prospect of a protracted war in Ukraine and disruptions in the supply of energy resources, AP reports.

The gross domestic product (GDP) of the EU will grow by 2.7% this year and by 2.3% in 2023, the European Commission said.

The European Commission's previous forecast was for growth of 4% this year and 2.8% in 2023.

The EU economy grew by 5.4% last year after a deep recession caused by the Covid-19 pandemic. GDP shrank by 5.9% in 2020.

European policymakers were counting on robust, albeit weaker, growth as they battled rising inflation triggered by the global energy crisis.

Energy has now become a key concern for the EU as it seeks sanctions on Russian energy imports that will plunge member states into recession.

Soaring energy prices are driving record inflation, making everything from food to housing more expensive.

Russia is the EU's largest supplier of oil, natural gas and coal, accounting for about a quarter of the bloc's total energy.

EU energy imports from Russia totaled 99 billion euros (£84 billion), or 62%, last year.

An EU ban on coal from Russia is due to take effect in August, and efforts are being made to cut demand for Russian natural gas by two-thirds this year.

The proposed oil embargo has run into hurdles due to reservations from some landlocked countries heavily dependent on Russian oil, such as Hungary.

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