Eurozone economy expected to grow, not shrink in 2023

Forecasts for the Eurozone’s economy have been updated by economists. The forecasts for the Eurozone in 2023 have been dramatically improved, going from -0.5% to 0.3%.

In the medium term, economic growth will be boosted by lower energy prices, significant government subsidies, and general economic resiliency. As a result, both interest rates and inflation are anticipated to continue to be high.

Economists predict weak growth in the medium term given that there is no longer any anticipated pent-up demand connected to the epidemic in the majority of countries.

The consensus among economists has also significantly improved prediction for 2023; now, economists estimate the economy to expand by 0.3% rather than decline by -0.5%. They have also significantly lowered 2024 projection from 1.2% to 0.9% at the same time.