The dynamics of the gross domestic product (GDP) in the euro area remains in the positive zone. By the end of 2022, the indicator increased by 0.1% compared to the previous quarter (an increase of 1.9% in annual terms), said Archyde.com with reference to Eurostat data.
The data coincided with the preliminary assessment of statisticians from January 31. The Eurozone has thus avoided the previously predicted technical recession, although GDP growth did slow down in the last three months of 2022. The largest economies in Eastern Europe experienced the most serious decline: GDP fell in Poland (-2.4% in the last quarter), Hungary (-0.4%) and the Czech Republic (-0.3%), notes Bloomberg.
The total number of people employed in the eurozone at the same time increased by 0.4% compared with the previous quarter. Eurostat emphasizes that this figure is higher than previously predicted, which allows us to draw conclusions regarding the stability of the labor market. Inflation in the single currency bloc also slowed down more than expected, to 8.5% (Eurostat data for January).
The growth of the European economy in 2023 may exceed autumn forecasts – the current estimate of the European Commission (EC) suggests an increase in GDP by 0.8%. At the same time, analysts and forecasters of the EC did not rule out a recession amid a record rise in energy prices. Companies and consumers have lowered gas consumption, but a fall in gas prices to the level of last autumn is expected to support economic activity.
Read more regarding this in the material “Falling is not necessary.”
