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Container ship in the port of Hamburg: "Unemployment is still at a record low"
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IMAGO / IMAGO/Nikito
According to a forecast by the EU Commission, the economy in the countries of the European Union will develop better than expected this year.
The Brussels authority expects gross domestic product (GDP) growth of 0.8 percent for the EU and 0.9 percent for the euro states, according to the estimate published on Monday.
The EU Commission has thus raised its expectations by 0.5 and 0.6 percentage points, respectively, compared to the autumn.
Accordingly, there will be no recession in either the EU or the euro zone.
According to the EU Commission, Germany can also avoid a recession.
The Brussels authority expects a small plus of 0.2 percent, after having estimated a minus of 0.6 percent in November.
According to the Commission, surveys indicate that confidence in economic development has improved.
Accordingly, the currency area, which grew to 20 members after Croatia's accession, should avoid a contraction of the economy in the first quarter.
"The risks of recession and gas shortages have receded and unemployment remains at record lows," said EU Economic Commissioner Paolo Gentiloni.
Well-stocked gas tanks
The expected growth rate for 2024 remains unchanged at 1.6 percent for the EU and 1.5 percent for the euro area.
Well-stocked gas storage facilities, lower consumption and more gas suppliers are given as reasons for the development.
In addition, things are still going well on the job market.
The numbers have also improved when it comes to inflation.
Headline inflation in the eurozone is expected to fall from 8.4 percent in 2022 to 5.6 percent this year.
2.5 percent is expected for 2024.
For Germany, the Commission expects inflation of 6.3 percent, in November it had predicted a value of 7.5 percent.
Sol/dpa/Reuters