EU Sidesteps Recession With Respite From Energy Crisis

EU Sidesteps Recession With Respite From Energy Crisis

Tuesday 14th February 2023 – 10:22 (GMT)

Eurostat’s initial estimates show a 0.1% economic growth in the Eurozone for the last quarter of 2022, in line with expectations and fuelled by lower energy costs. This modest uptick prevents a technical recession and brings the year’s economic growth to 3.5% across the 27 countries – outpacing China and the US but trailing the UK’s 4.1%.

Germany, however, remains on the verge of recession with a 0.2% GDP decline in Q4, undershooting the anticipated 0%. Meanwhile, France and Spain eke out a 0.1% and 0.2% growth, respectively, aided by mild winter weather.

As gas prices continue to fall, inflation likely peaked in the region at 9.2% in 2022, with forecasts predicting a dip to 6.4% in 2023 and then 2.8% in 2024. Employment grew by a higher-than-expected 0.4% in Q4 2022, prompting increased euro demand.

Prospects for the EU’s 2023 economic growth are now pegged at 0.8%, with some experts predicting it could go even higher by year-end.