The European Commission’s Winter Interim Forecast published on Thursday revised growth in both the European Union (EU) and the euro area down to 0.5 percent in 2023, from 0.6 percent projected in the Autumn Forecast in November.
For 2024, the EU’s economic growth is projected to reach 0.9 percent, down from the autumn projection of 1.3 percent. The eurozone’s growth is revised down to 0.8 percent from the 1.2 percent predicted in autumn.
“After a bruising 2023, the European economy has emerged a little weaker than expected, although the rebound should speed up gradually this year and into 2025,” said Valdis Dombrovskis, executive vice president of the European Commission for an Economy that Works for People.
“The European economy has left behind it an extremely challenging year, in which a confluence of factors severely tested our resilience,” said European Commissioner for Economy Paolo Gentiloni.
These factors include the erosion of household purchasing power, strong monetary tightening, the partial withdrawal of fiscal support, and falling external demand. The EU nearly avoided recession at the end of 2023 and is starting 2024 weaker than expected.
Economic growth should pick up in 2024, supported by inflation falling, real wage growth, and a resilient labor market. The second half of the year should see stabilization in the pace of growth, until the end of 2025, according to the forecast. Source: xinhua
