February 20, 2023 | Report
Although output growth in the Euro Area weakened further in Q4 2022, the region avoided a winter 2023 recession. In fact, the economy seems to have entered 2023 on a solid footing. Business and consumer confidence continued to recover, with natural gas prices declining again steeply the energy outlook improved further, and the labor market continued in Q4 to be a key source of economic strength for the region. All in all, following better-than-expected Q4 GDP figures, we raise our GDP forecasts for 2023 but only modestly, maintaining our expectations for weak growth in 2023.
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