Positive economic signals suggest that Europe can avoid a dreaded recession in 2023.
According to the Vietnam News Agency correspondent in Berlin, economic officials of the European Union (EU) on January 16 offered a more optimistic vision for the economic future of the bloc, with the latest data showing that the “old continent” “can avoid a fight Depression as serious as predicted a few months ago.
Speaking ahead of the monthly meeting of eurozone (Eurozone) finance ministers in Brussels (Belgium), EU Economic Commissioner Paolo Gentiloni said that although the economic situation of the bloc remains uncertain… there have been some encouraging signals. Mr. Gentiloni said: “We have managed to reduce our dependence on energy, the price of this commodity has dropped significantly and inflation has peaked at the end of 2022. So there is a chance for Europe to avoid a deep recession and might enter a period of slower and more limited economic contraction.”
Despite sharing Mr Gentiloni’s assessment, EU Trade Commissioner Valdis Dombrovskis added that Europe should remain cautious. Speaking to the press, he said: “Clearly, we are seeing some positive signs, like the EU labor market is still very strong. There are also some signs that inflation may have peaked. But I would say we have to be vigilant.”
The assessments come on the heels of a report earlier this month that highlighted a smaller-than-expected drop in business activity in the Eurozone’s private sector.
S&P Global’s Purchasing Managers’ Index (PMI) said the Eurozone economy continued to contract in December 2022, but the severity of the recession was adjusted for the second straight month, indicating that The slowdown in the economy may be milder than initially anticipated.
Meanwhile, according to a survey by the World Economic Forum (WEF), released on January 16, nearly two-thirds of senior economists in the public and private sectors believe that the economic downturn global might happen this year. About 18% of respondents consider a recession very likely.
[Ủy viên Kinh tế châu Âu: EU có khả năng tránh được suy thoái sâu]
Although a third think a global recession can be avoided, there is a consensus that the outlook for economic growth in Europe and the US is bleak.
In a statement on the same day, WEF Executive Director Saadia Zahidi said: “The current environment of high inflation, low growth, public debt and high fragmentation is reducing the incentive for investments needed to recover. restore growth and raise living standards for the world’s most vulnerable.”
Last week, German Economy Minister Robert Habeck also forecast Europe’s largest economy will fall into recession in 2023 due to the impact of the energy crisis following Russia cut gas supplies related to the crisis. conflict in Ukraine. According to Habeck, the German economy is forecast to shrink by 0.4% this year as the energy crisis is not completely under control.
According to data released last week, the German economy will grow 1.9% in 2022, down from 2.6% recorded in 2021.
Phuong Hoa (VNA/Vietnam+)
