Eurozone started the year with a record “moderate” growth A very complex economic environment as a result of increasing geopolitical tensions in the Middle East region, exacerbated by the emerging crisis in the Red Sea and the war in Ukraine. Still yes European group He rules out a general recession in the eurozone and is confident that the bloc can resist and end the year with growth of around 1% of GDP. “We see hope at the end of the tunnel”President gave assurance after first meeting of the year Easter Donohoe.
“Looking ahead to 2024, I continue to believe that the euro area economy is in good shape in the context of economic challenges (…). We are trying to reduce inflation and we are doing it successfully, and of course there is war on our borders. “Despite this, we see employment at record levels and economic growth in many countries,” the Irish politician underlined within the framework of the meeting in which the Spaniard attended for the first time as a minister. Carlos’ Body. “I see the glass half full, and the IMF has recognized our significant response and resilience,” Donohoe said after a meeting of IMF representatives. International Monetary Fund They presented their preliminary report on the euro area, known as Article IV.
In December, the European Central Bank revised its growth forecasts for the euro zone downwards, predicting that the bloc’s growth this year would be 0.8%. Despite this decline, the Eurogroup chairman is confident of closing the year around 1%. “Although it’s a lower growth rate than I’d like to see, there’s still growth despite all the challenges, so it’s sound economic behavior,” he added. European sources insist there are no signs of a “deep or widespread recession” and that economic activity is likely to “gradually recover” throughout the year.
February 15 predictions
The commissioner responsible for the economy was much more cautious, Paolo Gentiloni, who will present winter economic forecasts HE next February 15. “The eurozone economy has lost momentum in the second half of 2023 and there is likely to be some weakness in the winter months, but at the same time inflation is falling and we are getting good news from the labor market. “However, uncertainty is high and there are growth risks due to the geopolitical context,” he warned, pointing to the war in Russia and the Middle East conflict that also affects maritime transportation due to Houthi attacks in Yemen.
“If the situation worsens this could have implications for energy prices and supply chain disruptions, which could impact inflationary pressures, but this is not the case at the moment. We will evaluate the potential negative impact on our winter forecasts, which I will present on February 15,” Gentiloni explained to the Minister Corps, who also met with Donohoe and the Commission vice-president on the sidelines of the meeting. Valdis Domvrovskis. Corpus emphasized that despite increasing geopolitical tensions, Spain entered 2024 with a “privileged position” and a different growth compared to other Eurozone countries.