BAKU, Azerbaijan, October 12. Europe’s economic growth is expected at 3.1 percent in 2022, Trend reports via the latest World Economic Outlook from the International Monetary Fund (IMF).
As of the 2023 forecast, the GDP growth of the Eurozone is projected at 0.5 percent, the report said.
There is an upward revision in the 2022 forecast - 0.5 percentage points since July, due to a stronger outturn in most euro area economies in the second quarter of this year. At the same time, the 2023 outlook saw a downward revision of 0.7 percentage points.
According to the IMF, several countries have experienced a recovery in tourism-related services and industrial production, which added to their economic growth. However, still, most European economies are expected to go through consequences resulting in negative annual GDP growth.
“Weak 2023 growth across Europe reflects spillover effects from the war in Ukraine, with especially sharp downward revisions for economies most exposed to the Russian gas supply cuts, and tighter financial conditions, with the European Central Bank having ended net asset purchases and rapidly raising policy rates by 50 basis points in July 2022 and 75 basis points in September 2022,” the report noted.
Meanwhile, the IMF does not expect economies of emerging and developing Europe to grow at all this year. At the same time, this projection has been revised upwards from a negative 1.4 percent expected in July.
However, IMF’s 2023 forecast for emerging and developing Europe has been revised down, compared to previous projections, by 0.3 percentage points to 0.6 percent.
“The economic weakness reflects –3.4 percent and –2.3 percent projected growth in Russia in 2022 and 2023 and a forecast contraction of 35 percent in Ukraine in 2022. The contraction in Russia’s economy is less severe than earlier projected, reflecting resilience in crude oil exports and in domestic demand with greater fiscal and monetary policy support and a restoration of confidence in the financial system,” the report noted.
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