In the fourth quarter of last year, GDP growth was 0.1%. However, inflation and energy prices point to poor prospects in 2023.
The eurozone showed growth in the fourth quarter of 2022, managing to avoid recession despite high energy prices, lower confidence and rising interest rates. This was reported on January 31 by Reuters.
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According to Eurostat, GDP in the Eurozone increased by 0.1%. Compared to last year, growth was 1.9%, which exceeded expectations of 1.8%.
It noted that among the largest countries in the eurozone, Germany and Italy showed a decline in the quarter, but France and Spain rose.
Russia’s war with Ukraine, which has been going on for almost a year, has cost the eurozone, which now encompasses 350 million people in 20 countries, dear, because of the heavy reliance of some members on cheap energy.
Rising oil and gas prices have drained savings and stifled investment, while forcing the European Central Bank to make unprecedented rate hikes to curb inflation.
But the economy has also shown some unexpected resilience – such as during the COVID-19 pandemic, when growth exceeded expectations as businesses adjusted to changing circumstances faster than employers had predicted. of policy.
More recent data points to a possible slow recovery, helped by government support and a mild winter that has limited energy spending.
However, the overall picture remains weak, with a weak growth forecast for 2023 due to a large decline in real incomes and a sharp increase in interest rates.
Experts still expect the eurozone economy to shrink slightly in the first half of 2023, with the expected recovery in the second half likely to be weak.
The IMF earlier reported that it upgraded its forecast for global GDP growth in 2023 to 2.9%, which was 0.2% more than expected in October.
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.