European growth forecast hikes to 1.1%

The European Commission announced on Monday that it has boosted its 2023 economic growth outlook for the eurozone by 0.2 points to 1.1 percent, as it also raised the inflation forecast for the single currency area.

According to Eurostat’s preliminary flash estimate, GDP grew by 0.3 percent in the EU and by 0.1 percent in the euro area in the first quarter of 2023.

“Thanks to determined efforts to strengthen our energy security, a remarkably resilient labour market and easing supply constraints, we avoided a winter recession and are set for moderate growth this year and next,” the statement.

The growth forecast for the 27-nation EU as a whole was also raised for 2023, though it remains lower than the eurozone at around one percent.

The eurozone inflation forecast has also been revised higher, forecast to hit 5.8 percent in 2023 compared to 5.6 percent in the previous outlook.