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EU cuts forecast for economic growth as war’s fallout widens

The EU’s gross domestic product will expand 2.7% this year and 2.3% in 2023, the bloc’s executive arm said Monday — its first economic predictions since Russia invaded Ukraine on Feb. 24.

The European Commission’s previous outlook expected growth of 4% this year and 2.8% in 2023. The EU economy expanded 5.4% last year following a deep recession prompted by the COVID-19 pandemic. GDP shrank 5.9% in 2020.

“Russia’s invasion of Ukraine has posed new challenges, just as the union had recovered from the economic impacts of the pandemic,” the commission said when releasing the forecast. “The war is exacerbating pre-existing headwinds to growth.”

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(source Associated Press)