The European Commission revised its growth forecasts for the bloc's economy in May 2023. The EU is expected to grow by 1% in 2023, compared to the previous winter forecast of 0.8%. For 2024, the revised forecast indicates a growth rate of 1.7%, up from the previous projection of 1.6%. Similarly, the EA forecasts were adjusted to 1.1% for this year (vs 0.9%) and 1.6% for 2024 (vs 1.5%). Specifically, the German economy is projected to expand by 0.2% in 2023 and 1.4% in 2024. In terms of inflation, the Euro Area's forecasts were revised upwards. The projected inflation rate for 2023 is now 5.8%, an increase from the previous estimate of 5.6%. For 2024, the forecasted inflation rate is 2.8%, up from 2.5%. It is worth noting that the core inflation rate likely peaked in the first quarter and is anticipated to average 6.1% for this year before decreasing to 3.2% in 2024. The European Commission emphasized that as inflation remains high, financing conditions are expected to tighten further. source: EUROSTAT
Full Year GDP Growth in Euro area averaged 1.48 percent from 1996 until 2022, reaching an all time high of 5.30 percent in 2021 and a record low of -6.10 percent in 2020. This page includes a chart with historical data for Euro Area Full Year GDP Growth. Euro Area Full Year GDP Growth - data, historical chart, forecasts and calendar of releases - was last updated on June of 2023.
Full Year GDP Growth in Euro area is expected to reach 0.60 percent by the end of 2023, according to Trading Economics global macro models and analysts expectations. In the long-term, the Euro Area Full Year GDP Growth is projected to trend around 1.50 percent in 2024 and 1.80 percent in 2025, according to our econometric models.