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EU Economy to Grow in 2024
The European Commission predicts economic growth for the EU in 2024 and 2026, driven by low unemployment. However, risks remain, including protectionism and the war in Ukraine.
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EconomyEuropean UnionLabour MarketEuropeInternational TradeUnemploymentGrowthRisk
European CommissionEuropean UnionUs
GentiloniDonald Trump
- What is the outlook for employment growth in Europe?
- The historically low European unemployment rate, particularly benefiting women, older workers, and migrant workers, is a key factor driving the projected economic growth. However, employment growth is expected to slow in the coming years.
- What are the primary risks identified for the European economy?
- One major risk to the European economy is protectionism, particularly from the United States. Eurocommissioner Gentiloni expressed concern about potential negative impacts on both the EU and US if protectionist policies are implemented.
- How is the Ukrainian economy performing despite the ongoing war?
- Despite the war and resulting challenges like labor shortages and attacks on energy infrastructure, the Ukrainian economy is performing surprisingly well, with projected growth of 3.5 percent in 2023 and 2.8 percent in 2024. This is partly due to the resumption of exports and increased government spending on defense.
- What is the main factor driving the projected economic growth in Europe?
- While the European economy is projected to grow, productivity is expected to stagnate this year before a slight recovery in subsequent years. This modest productivity improvement is projected to continue through 2026.
- What is the European Commission's prediction for the EU's economic growth in 2024 and 2026?
- The European Commission predicts that the EU's economy will grow by 1.5 percent in 2024 and 1.6 percent in 2026, after a period of contraction. This growth is primarily attributed to the historically low unemployment rate in Europe, with eight million more people employed than before the COVID-19 pandemic.