European Commission raises estimate of EU real GDP growth for 2023 to 0.8%

The European Commission (EC) has raised its estimate of real GDP growth in the EU for the current year to 0.8% from 0.3% in the previous autumn forecast, Report informs referring to the EC winter economic forecast.

Expectations for 2024 remained the same - growth of 1.6%.

The estimate of GDP growth in the eurozone, which includes 20 of the 27 states of the union, was also increased for the current year: to 0.9% from 0.3%. The forecast for 2024 has not changed - a rise of 1.5%.

At the end of 2022, the GDP of the European Union and the eurozone grew by 3.5%, while in the autumn forecast the EC expected it to grow 3.3% and 3.2%, respectively.

The estimate of inflation in the Eurozone for the current year has been reduced to 5.6% from 6.1%. Expectations for 2024 are also lowered to 2.5% from 2.6%.

As for the EU, the European Commission improved the estimate to 6.4% from 7%. For the next year, the forecast was reduced to 2.8% from 3%.

In 2022, inflation in the euro area, according to the winter forecast of the EC, was 8.4%, and in the EU - 9.2% against 8.5% and 9.3% expected in autumn, respectively.