Euro zone GDP reacts and removes prospect of recession

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The fourth quarter result represents a slight drop compared to the third quarter of 2022, which had increased by 0.3%, but exceeded the forecasts of many analysts, who warned of a sharper fall. The euro zone economy grew 0.1% in the fourth quarter of 2022, according to data released this Tuesday (31) by the European statistics agency Eurostat, a result that removes the prospect of a recession that seemed imminent. According to Eurostat, the result for the fourth quarter represents a slight drop compared to the third quarter of 2022, which had increased by 0.3%, but exceeded the forecasts of many analysts, who warned of a sharper fall. France registers economic growth of 2.6% in 2022 German economy has unexpected contraction in the 4th quarter In the whole of 2022, the GDP of the euro zone advanced 3.5%, pointed out Eurostat. The impact of the war in Ukraine and the sharp rise in energy prices cast a cloud of uncertainty over the future of the European economy, with the possibility of a recessive scenario in boreal winter. The euro zone is the group of 20 of the 27 countries of the European Union (EU) that adopt the euro as their common currency and have the European Central Bank (BCU) as their monetary authority. According to Eurostat, for the 27 EU countries as a whole, GDP for the fourth quarter ended stable, after advancing 0.3% in the third quarter. In this way, the EU as a whole closed 2022 with a GDP growth of 3.6%, said Eurostat. According to figures from the European statistics agency, Germany closed the fourth quarter with a drop of 0.2%, while Spain did so with a rise of 0.2%. The difficult scenario of 2022 generated a gloomy expectation for the European economy in 2023. Thus, the European Commission (Executive arm of the EU) significantly revised downwards its forecast for GDP growth in 2023, to just 0.3% for countries that share the single currency, compared to the 1.4% expected so far. In November, the European Commissioner for the Economy, the Italian Paolo Gentiloni, warned that it was necessary to prepare for a recession, which would become evident in the last quarter of 2022 and the first of 2023.

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