Economic growth forecast for Europe and Eurozone in 2023 improved to 0.8 and 0.9 percent
This year, the GDP of the EU countries will grow by 0.8 percent, and the countries of the euro area – by 0.9 percent. This is stated in the February forecast of the European Commission. Back in November 2022, both indicators were at the level of 0.3 percent. Interfax.
The authors of the document note that the European economy is doing better than expected, and inflation has already overcome peak values. At the end of the year in the euro area, it will reach 5.6 percent, which is lower than 6.1 percent from the November forecast. For the EU, the indicator has been improved from 7 to 6.4 percent.
In 2024, inflation will be 2.5 and 2.6 percent, economic growth – 1.5 percent and 1.6 percent for the eurozone and the European Union, respectively. The European Commission drew attention to the continued stability of the labor market. The unemployment rate in the countries of the region remained at a historic low of 6.1 percent in December.
European Commissioner for Economics Paolo Gentiloni stressed that the risks associated with the COVID-19 pandemic and the shortage of natural gas have significantly decreased.
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At the same time, he acknowledged that uncertainty remains high due to geopolitical events, but recalled that Europe was successful in 2022. Last year, the GDP of the European Union and the eurozone, according to current estimates, grew by 3.5 percent.
As of February 13, the cost of natural gas at the European TTF hub fixed below $600 per thousand cubic meters, where it is one and a half times lower than a year ago.
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