High inflation in the Eurozone will fall next year, according to the IMF

Making a statement about the inflation that brought strong winds in the world, International Monetary Fund (IMF) President Kristalina Georgieva said that they expect the inflation, which has been increasing rapidly in the Euro Zone, to decrease next year.

Making statements to journalists at the end of the Euro Group Meeting held in Brussels, Georgieva reminded that the regional economy shrank by 6.5 percent in 2020.

"The euro area economy is recovering rapidly, thanks to high vaccination levels and continued strong political support," Georgieva said. said.

"UNCERTAINTY CONTINUES ABOUT THE CORONAVIRUS VARIANT"

Pointing out that there are uncertainties regarding the coronavirus and variants in the economic outlook, Georgieva stated that the course of the epidemic will be decisive for the economic recovery.

Georgieva stated that they expect inflation in the Euro Area to decrease next year, despite the recent increase in prices.

Explaining that high inflation was caused especially by the base effect of the low oil and natural gas prices last year, interruptions in supply chains and the abolition of VAT cuts in Germany, Georgieva said, "Inflation will decrease in 2022 with the disappearance of these factors and the European Central Bank (ECB) will reach 2 percent in the medium term. We anticipate that it will fall short of its target.” used the phrase.

Annual inflation in the Eurozone in November reached the highest level of the last 25 years with a rate of 4.9 percent. Inflation in the Euro Zone in August, September and October reached the highest level of recent years. The recent rise in inflation has also disturbed Europeans.