BAKU, Azerbaijan, November 11. The GDP growth in the EU and eurozone in 2023 is expected at 0.3 percent, Trend reports, citing the European Commission.
According to the report, as inflation continues to reduce household disposable income, the decline in economic activity will continue in the first quarter of 2023.
“Growth is expected to return to Europe in spring, as inflation gradually relaxes its grip on the economy. However, with powerful headwinds still holding back demand, economic activity is set to be subdued,” the commission noted.
Furthermore, as the commission forecasts, the economic growth is projected to recover gradually by 2024, averaging 1.6 percent in the EU, and 1.5 percent - in the eurozone.
“Amid elevated uncertainty, high energy price pressures, erosion of households' purchasing power, a weaker external environment and tighter financing conditions are expected to tip the EU, the euro area and most Member States into recession in the last quarter of the year,” the report said.
Thus, it is expected that the GDP growth in 2022 will reach 3.3 percent in the EU, and 3.2 percent - in the eurozone, which is, as the commission noted, well above the summer forecast (2.7 percent).
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