EU executive raises euro zone 2023 growth forecast

Euro zone economic growth is likely to be stronger than expected this year.

The EU executive arm said economic growth in the 20 countries using the euro was likely to be 0.9% this year, rather than the 0.3% predicted last November.

Euro zone consumer inflation, which hit record highs of 10.6% last October on a surge in energy and food prices caused by the Russian invasion of Ukraine, is forecast to 5.6% this year 2023 and 2.5% in 2024.

“Domestic demand could turn out higher than projected if the recent declines in wholesale gas prices pass through to consumer prices more strongly and consumption proves more resilient,”