The European Commission on Thursday has lowered its 2023 gross domestic product (GDP) growth forecast for both euro area and the EU due to uncertainty created by Russia’s war on Ukraine.

The real GDP is forecast to rise by 1.5% next year in the EU27 and 1.4% in 2023 the euro area, the commission said in its report -- the Summer 2022 Economic Forecast.

It kept the EU growth projection for this year at 2.7% while lowering the euro area's to 2.6%.

The previous real GDP forecast for both the EU and the euro area was 2.7% in 2022 and 2.3% in 2023.

The annual average inflation is projected to peak at historical highs this year, at 7.6% in the euro area and 8.3% in the EU, before easing in 2023 to 4.0% and 4.6%, respectively.

The upward revision was stemmed from war-driven rapid increase in energy and food commodity prices./agencies