Europe's outlook for economic growth brightens — a little
The European Union’s executive body raised its economic growth forecast, saying Europe had dodged a winter recession that was feared amid an energy crisis
FRANKFURT, Germany (AP) — The European Union's executive body raised its economic growth forecast, saying Europe had dodged a winter recession that was feared amid an energy crisis but warning that stubbornly high inflation is likely to keep hurting the economy by sapping people's ability to spend.
The outlook for the 20 countries using the euro currency improved to growth of 1.1% this year from 0.9% in the previous predictions in February, the European Commission said in its spring forecast Monday.
The European economy “is holding up remarkably well in the face of Russia’s aggression against Ukraine," said commission Executive Vice President Valdis Dombrovskis in a statement.
Europe had faced expectations of a winter energy catastrophe after Russia cut off most supplies of natural gas to the continent amid the war in Ukraine. Prices surged to record highs for gas needed to heat homes, generate electricity and power factories — spurring painful spikes in consumer prices.
