The European economy is proving more resilient than previously expected. The EU Commission is now anticipating higher growth for the EU countries.
According to a forecast by the EU Commission, the economy in the EU will be more stable this year than previously expected. The authority expects growth of 1.0 percent for the EU, according to the estimate published in Brussels on Monday. In the winter forecast published in February, the Commission had still assumed growth of 0.8 percent.
The authority is now assuming growth of 1.1 percent for the countries in the euro zone – after 0.9 percent in the winter forecast. The European economy is proving to be resilient in a challenging global environment, it said when the spring forecast was presented.
Lower energy prices, easing supply shortages and a strong labor market led to moderate growth in the first three months of the year and allayed fears of a recession. For the coming year, the Commission is assuming growth of 1.7 percent, after 1.6 percent in the winter forecast. For the euro area, it expects 1.6 percent in 2024 (previously: 1.5 percent).
Inflation has been revised up from winter (5.6 percent) to 5.8 percent this year in the euro zone. 2.8 percent is expected for 2024.
Source: Stern
