The European economy should show lower inflation and better than expected growth in 2023

A clearing in the economic indicators of the euro zone. The European economy should show lower inflation and better-than-expected growth this year, the European Commission announced on Monday 13 February. The European executive announced that it was revising its growth forecast for the euro zone in 2023 upwards to 0.9% (+0.6 points) and estimated that it should “nearly avoid” a recession this winter.

These figures mark a sharp slowdown compared to the 3.5% growth recorded last year, both in the EU and the euro zone. But the economy is resisting the consequences of the war in Ukraine better than expected. “Despite exceptional shocks”the European economy avoided a contraction in gross domestic product (GDP) in the last quarter of 2022.

“Favorable developments since the fall have improved the outlook for this year,” estimated the Commission in a press release, citing in particular the fall in wholesale gas prices “well below their pre-war level”. Brussels has also lowered its inflation forecast for the euro zone in 2023 to 5.6% (-0.5 points) and believes that the peak has now been exceeded thanks to the lull in energy prices.