The European Commission released a winter economic report on the 15th, which increased the economic growth rate of the EU and the euro area last year from 0 in the autumn6% to 05% and the EU economic growth rate forecast for 2024 from 13% to 09%, the eurozone economic growth rate is expected to increase from 12% to 08%。
According to the report**, the EU and Eurozone economies will each grow by 17% and 15%。
The report noted that economic growth was dampened last year due to factors such as declining household purchasing power, a sharp tightening of monetary policy, a partial withdrawal of fiscal support, and a decline in external demand. After narrowly avoiding a technical recession in the second half of last year, the growth outlook for the EU economy remained weak in the first quarter of this year.
In addition, the report noted that the level of inflation fell better than expected. On an annual basis, EU inflation will rise from 63% to 3 this year0%, down to 2 in 20255%；Eurozone inflation will rise from 5 last year4% to 2 this year7%, which will fall to 22%。
According to the report, lower energy** and weak economic growth momentum have led to lower inflation. However, in the short term, the expiration of energy subsidies in member countries and the rise in shipping costs will also bring some pressure.
The report also expects a gradual acceleration in economic activity in Europe this year. As inflation continues to weaken, real wage growth and resilient labor markets will support consumption**. Investment will also benefit from the gradual easing of credit conditions and related support measures.
*: Xinhua News Agency, Brussels, Feb. 15 (Xinhua) -- Reporter Kang Yi.
Review: Sun Shijian.