On Monday, the European Commission announced that the European Union (EU) anticipates a 1% economic growth in 2023, primarily attributed to lower energy prices.
According to the European Commission’s Spring Economic Forecast, the EU’s gross domestic product is set to grow by 1% this year and by 1.7 % in 2024.
The report said “lower energy prices lift the growth outlook” and corrected the GDP expectations from 0.8% to 1% compared to its winter edition.
“Markedly lower energy prices are working their way through the economy, reducing firms’ production costs” while “consumers are also seeing their energy bills fall,” the EU executive body asserted in a statement.
However, “inflation remains high” as it is expected to reach 6.7% in 2023, the EU executive body stressed.