EU forecast: prospects for the European economy are improving

By: Trademagazin Date: 2023. 05. 15. 12:11

Despite the persistently challenging global environment, economic prospects are improving, the European economy continues to show resilience, the European Commission wrote in its spring economic forecast published on Monday.

Economic Policy Commissioner Paolo Gentiloni, explaining the prognosis, said that lower energy prices, easing of supply constraints and a strong labor market resulted in a small increase in the first quarter of 2023, which dispelled the fear of recession.

The better-than-expected start to the year raises the growth prospects of the EU economy to 1 percent in 2023 – instead of 0.8 percent according to the winter interim forecast – and for 2024 from the previously expected 1.6 percent to 1.7 percent.

Expectations for the euro zone are also revised upward and are of a similar magnitude: GDP growth of 1.1 percent is expected in 2023 and 1.6 percent in 2024. The continuing price pressure also adjusted inflation upwards, to 5.8 percent in 2023 and 2.8 percent in 2024 in the euro area.