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Winter resilience lifts outlook for EU growth amid persistent challenges

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Summary
Nutrition label

80% Informative

The EU economy has weathered the adversities of the past three years remarkably well.

Employment growth and sharply declining energy prices offsetting the drag of further monetary tightening.

The European Commission Spring 2023 Forecast lifts the growth projections for the EU economy to 1.0% in 2023 and 1.7% in 2024.

High inflation and strong real GDP growth, coupled with the unwinding of pandemic-related emergency measures, are set to dominate in the short term, leading to a reduction of the aggregate EU government deficit to 3.4% of GDP in 2022.

The reduction in the debt ratio is expected to be particularly pronounced for high-debt member states with a primary budgetary surplus (i.e. Cyprus, Greece, and Portugal) Over time, monetary policy tightening will feed into higher costs of servicing public debts.

European Commission (2022), European Economic Autumn 2022 Forecast, European Economy Institutional Paper 187, DG ECFIN, November.

IMF (2023), “On the Path to Policy Normalization”, Fiscal Monitor, April.

European Economic Spring 2023 Forecast and “Fiscal policy guidance for 2024”.

VR Score

91

Informative language

97

Neutral language

65

Article tone

formal

Language

English

Language complexity

64

Offensive language

not offensive

Hate speech

not hateful

Attention-grabbing headline

not detected

Known propaganda techniques

not detected

Time-value

medium-lived

External references

no external sources

Source diversity

no sources

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