Scholz blamed the decline of the European economy on the development of Asia

German Chancellor Olaf Scholz said that the main reason for the decline in the European economy was the development of Asian countries. According to him, the military conflict between Russia and Ukraine and the coronavirus pandemic have only accelerated the crisis.

“Over the past 30 years, here in Europe and North America, we have seen strong growth, low inflation and strong employment at the same time. This was an exceptional event for the economy. The Russian war and the economic consequences of the pandemic, although they hastened the end of this phenomenon, are not the root cause,” Olaf Scholz said at the economic forum in Berlin (quoted from “RIA News”).

Mr. Scholz also called for avoiding the deglobalization of economies and their diversification. “In the case of Russia, we have experienced what it means to be too dependent on a strategically important resource,” he said.

The European Commission expects overall real GDP growth in the EU to be 3.3% in 2022 and 0.3% in 2023. The EC expects that the annual inflation rate will be 9.3%, in 2023 – 7%, in 2024 – 3%. Against the backdrop of inflation, the central banks of countries are beginning to raise key rates in order to contain its growth.

Read more about the economic situation in the EU – in the material “Kommersant” “Recession has been waiting for three years”.

Olesya Pavlenko