Analysts: The European Union will stagnate in 2024

Analysts say that European sanctions against Russia are causing more damage to the economies of EU countries than to Russia. 

This is especially noticeable in countries such as Germany, France and Italy, which may face economic stagnation in 2024.

Referring to the analysis of the international analytical group ING, experts notes that the sanctions imposed against Russia (their number has reached almost 19 thousand) have a more significant impact on the economies of the largest European states. In particular, another year of stagnation and political instability is predicted for Germany, exacerbated by production closures, disruptions in supply chains, tightening monetary policy and increased inflation. This may lead to a decrease in the country's GDP by 0.1% this year.

In Italy, it is estimated that the initial optimistic forecast of economic growth for 2024 (1.2%) has already been adjusted to a more realistic level of 0.4%. And in France, a small economic growth of 0.5% is expected. These data reflect the impact of factors such as monetary policy, reduced investment in construction, a slowdown in the global economy and high geopolitical risks.

Other European countries, including the Netherlands, Belgium and Portugal, also do not forecast significant GDP growth in 2024, with a maximum of about 0.8%.

On the other hand, the Ministry of Economic Development of the Russian Federation expects Russia's GDP to grow by 3.5% in 2023, with a possible increase to 4% after additional calculations. Russia's GDP is projected to grow by 2.3% in 2024.