Debt sustainability monitor / European Commission, Economic and Financial Affairs
2023
Published:
2024
Publisher:
Publication Office of the European Union, Luxembourg
The EU economy appears set for a delayed rebound in growth amid faster easing of inflation. After subdued growth in 2023, the EU economy has entered 2024 on a weaker footing than previously expected. Already towards the end of 2022, the economic...
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ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
Signature:
VS 338
Inter-library loan:
No inter-library loan
The EU economy appears set for a delayed rebound in growth amid faster easing of inflation. After subdued growth in 2023, the EU economy has entered 2024 on a weaker footing than previously expected. Already towards the end of 2022, the economic expansion came to an abrupt end and activity has since been broadly stagnating, against the background of falling household purchasing power, collapsing external demand, forceful monetary tightening and the partial withdrawal of fiscal support in 2023. Economic activity is expected to gradually accelerate in 2024. Headline inflation has declined faster than expected in 2023, largely driven by falling energy prices. As inflation has declined, real wage growth and a resilient labour market should support a pick-up in consumption. Despite falling profit margins, investment should benefit from a gradual easing of credit conditions and the continued implementation of the Recovery and Resilience Facility. According to the Commission's 2024 winter forecast, the EU economy is expected to grow by 0.5% in 2023, 0.9% in 2024 and 1.7% in 2025. In the EU, the Harmonised Index of Consumer Prices (HICP) inflation is projected to fall from 6.3% in 2023 to 3.0% in 2024 and 2.5% in 2025.
