Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

EU upgrades its forecasts but says UK will lag behind

by May 16, 2023
May 16, 2023
EU upgrades its forecasts but says UK will lag behind

The European Union has upgraded forecasts for its growth this year, while predicting a “modest contraction” in the size of the British economy.

European Commission spring forecasts increased predictions of growth in the EU to 1 per cent, up from 0.8 per cent in February, with persistent inflation posing the greatest risk to the economy.

In contrast to European economies, Britain is forecast to face a contraction of 0.2 per cent this year. Estimates suggest it will continue to lag behind European economies in 2024 with a growth of 1 per cent compared to 1.7 per cent.

“The UK economy is expected to see a modest contraction in 2023, as household real incomes continue to fall and consumption and external demand soften, while business investment remains weak,” said the forecast from Brussels. A mild recovery is expected in 2024, as inflation continues to ease and growing employment and rising real wages boost household real incomes.

Paolo Gentiloni, the EU’s economy commissioner, said: “The European economy is in better shape than we projected. Thanks to determined efforts to strengthen our energy security, a remarkably resilient labour market and easing supply constraints, we avoided a winter recession and are set for moderate growth this year and next.”

Gentiloni warned that while lower than expected energy prices following Russia’s invasion of Ukraine have lifted the growth outlook “downside risks to the economic outlook have increased”, particularly because of core inflation.

“Risks remain too plentiful for comfort and Russia’s brutal invasion of Ukraine continues to cast a shadow of uncertainty over the outlook. We must remain vigilant – and stand ready to respond to any future shocks,” he said.

In a mark of concern, the eurozone inflation forecast has also been revised higher, and is now forecast to hit 5.8 per cent in 2023 compared to 5.6 per cent in February.

“As inflation remains high, financing conditions are set to tighten further,” the forecast said.

“Though the ECB and other EU central banks are expected to be nearing the end of the interest rate hiking cycle, the recent turbulence in the financial sector is likely to add pressure to the cost and ease of accessing credit, slowing down investment growth and hitting in particular residential investment.”

Urging governments to cut back on spending, the commission warned that an “expansionary fiscal policy stance would fuel inflation further”.

“In addition, new challenges may arise for the global economy following the banking sector turmoil or related to wider geopolitical tensions,” the forecast said.

The more optimistic Brussels forecast came as figures for March showed a sharp fall in eurozone industrial production with a contraction of 4.1 per cent in production of capital goods, adding to a 1.4 per cent year-on-year decline.

Read more:
EU upgrades its forecasts but says UK will lag behind

0
FacebookTwitterGoogle +Pinterest
previous post
Royal Mail could face fine as regulator looks into late deliveries
next post
Vodafone to cut 11,000 jobs in turnaround plan

You may also like

Government urged to disclose how £1.5bn raised from...

September 19, 2023

Innovations in Diesel Emission Control and Monitoring

February 23, 2024

Top Trends in Telecom Project Management

November 7, 2024

Betting Apps: Revolutionizing Online Betting and Paving the...

May 31, 2023

Understanding the value of becoming a certified Blockchain...

May 27, 2025

Government’s free childcare scheme in disarray, charities say

January 15, 2024

Bloom & Wild’s Losses Soar Amidst Shifting Consumer...

April 16, 2024

Rio Ferdinand hopes to score with DeliveryApp investment

June 19, 2023

Motherhood ‘has driven 250,000 women out of jobs’

November 6, 2023

MPs give Truss 17 days to save premiership...

October 14, 2022

Government urged to disclose how £1.5bn raised from...

September 19, 2023

Innovations in Diesel Emission Control and Monitoring

February 23, 2024

Top Trends in Telecom Project Management

November 7, 2024

Betting Apps: Revolutionizing Online Betting and Paving the...

May 31, 2023

Understanding the value of becoming a certified Blockchain...

May 27, 2025

Government’s free childcare scheme in disarray, charities say

January 15, 2024

Bloom & Wild’s Losses Soar Amidst Shifting Consumer...

April 16, 2024

Rio Ferdinand hopes to score with DeliveryApp investment

June 19, 2023

Motherhood ‘has driven 250,000 women out of jobs’

November 6, 2023

MPs give Truss 17 days to save premiership...

October 14, 2022

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Hegseth tears up red tape, orders Pentagon to begin drone surge at Trump’s command

      July 10, 2025
    • SCOOP: Sen Ron Johnson readies subpoenas for FBI, DOJ in Butler shooting probe

      July 10, 2025
    • Jackson defends controversial, fiery SCOTUS dissents as telling people ‘how I feel’

      July 10, 2025
    • How to Find Compelling Charts in Every Sector

      July 10, 2025
    • AstroTurf Leads Innovation in Player Safety and Sustainability for Modern Sport

      July 10, 2025
    • Russia sanctions bill gains steam as White House appears to change tone on Putin

      July 10, 2025

    Categories

    • Business (8,444)
    • Investing (2,115)
    • Politics (16,000)
    • Stocks (3,199)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved