The EU is set to dodge a previously forecast recession as falling gas prices, supportive government policy and firm household spending boost the region’s outlook, according to the European Commission.
Brussels lifted its predictions for EU growth this year to 0.8 per cent, stronger than the 0.3 per cent forecast in November, and said the region would avoid a technical recession — defined as two successive quarters of economic contraction. The euro area will expand 0.9 per cent in 2023, better than the 0.3 per cent that the commission expected towards the end of last year.
The upgrades bring the commission into line with analysts, which now predict the region will dodge a recession after forecasting a severe contraction during the latter half of 2022.