Amid high inflation, subdued business activity and depressed consumer confidence, the Euro Area exits 2022 on a weak footing. We expect the region to have tipped into a recession in Q4 2022 which should last until Q1 2023. However, generous fiscal support to alleviate inflationary pressures, a particularly strong labor market, and favorable weather conditions that have kept energy disruptions from occurring are factors that will likely help cushion the blow. Looking forward, following this mild and short-lived recession, we expect economic growth in the Euro Area for 2023 to be a mere 0.3 percent.