EU expects economic improvement, inflation still painful
The European Commission raised its economic growth forecast for this year, saying Europe is narrowly out of recession and has already passed the peak of inflation as natural gas prices fell from astronomical levels.
However, the European Commission warned on Monday that high prices hurting consumers will continue to weigh on the economy in the coming months.
In its winter economic outlook, the Commission said growth should reach 0.8 percent by 2023 for the 20 euro-using EU countries. This is 0.3% more than the last forecast in November 2022.
The Commission estimates that for the broader bloc of 27 countries, growth will be 0.9 percent, also higher than 0.3 percent.
The commission also expected the European economy to avoid recession in the current quarter from January to March 2023.