EU raises Eurozone growth forecasts to 1.1%
ALBWABA – The Eurozone’s economy is expected to grow at 1.1 percent in 2023, according to a statement by the European Commission on Monday, thanks to declining energy prices and strong labour markets.
The European Union (EU)’s executive body previously anticipated a 0.9 percent growth rate in the Eurozone’s Gross Domestic Product (GDP), in February.
In January, oil prices soared to quarterly highs of $88.19 and $81.62 per barrel of Brent and West Texas Intermediate (WTI) crude, respectively, then dropped to $79.31 and 75.66, according to Statista’s data.
This ease in energy costs has driven positive expectations for both the Eurozone and EU economies, as shown in the Eurostats’ Euro Indicators report, issued on April 28.
Eurozone countries are the EU countries that have adopted the centralized Euro currency.
The Eurozone, on the other hand, includes all member countries of the EU, including those with their own national currencies.
Initial estimates in the report indicate a 0.1 percent increase in Eurozone GDP growth and a 0.3 increase in the EU’s growth rate.
Compared to the same duration in 2022 (Q1-2022), the combined GDP of the Eurozone and EU is estimated to have grown by 1.3 percent, the report said.
The Eurozone and EU achieved GDP growth rates of 1.8 percent and 1.7 percent, respectively, in Q4-2022, as reported by the commission.
The Winter 2023 Interim Economic Forecast lifts the projections for growth and lowers those for inflation from the Autumn 2022 forecast.
In 2024, GDP is expected to grow by 1.6 percent in the EU, and by 1.5 percent in the Eurozone.
For the rest of the year 2023, the commission expects inflation to reach 6.4 percent in the EU and 5.6 percent the Eurozone, then drop to 2.8 percent and 2.5 percent, respectively, in 2024.
