Goldman Now Says the Euro Area Will Avoid a Recession

Inflation easing to 3.25%

Economists at Goldman Sachs no longer predict a euro-zone recession after the economy proved more resilient at the end of 2022, natural gas prices fell sharply and China abandoned Covid-19 restrictions earlier than anticipated.

Gross domestic product is now expected to increase 0.6% this year, compared with an earlier forecast for a contraction of 0.1%. While growth will still be weak during the winter due to the energy crisis, the first quarter of 2023 will likely see expansion of 0.1%, according to economists led by Jari Stehn.

They also see inflation easing faster than thought — to about 3.25% by end-2023.

https://www.bloomberg.com/

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