May 12, 2023 | Report
Flash estimates on GDP growth in Q1 for leading European economies suggest the Euro Area has entered 2023 on a stronger footing than expected. In fact, an uptick in consumer confidence and business activity in April implies the region is likely to maintain its moderately positive growth outlook in the first half of 2023. However, tight financial conditions and unabated inflationary pressures will likely keep growth below its long-term trend for the remainder of 2023. As a result, we raise our forecasts for the region from 0.5 to 0.8 percent for 2023, and from 0.9 to 1.0 percent for 2024.
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