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EU Economy to Grow in 2024: Commission
The European Commission forecasts economic growth for the EU in 2024 and 2026, driven by low unemployment but facing risks from protectionism and the war in Ukraine.
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Netherlands
EconomyEuropean UnionLabour MarketEuropeInternational TradeUnemploymentGrowthRisks
European CommissionEuropean UnionUs
GentiloniDonald Trump
- What are the main factors influencing the predicted economic growth?
- While the European economy is projected to grow, productivity is expected to stagnate this year before a slight recovery in subsequent years. This slow productivity growth is a concern and is expected to continue until at least 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.
- What is the current state of unemployment in Europe, and how does it affect the economic forecast?
- The historically low European unemployment rate is a significant factor driving economic growth. This low unemployment rate is benefiting various groups, including women, older workers, and migrant workers, according to Eurocommissioner Gentiloni.
- How is the Ukrainian economy performing despite the ongoing war, and what are the contributing factors?
- Despite the war and labor shortages, the Ukrainian economy is performing surprisingly well, with projected growth of 3.5 percent in 2023 and 2.8 percent in 2024. This is due in part to resumed exports, increased household consumption, and high government defense spending.
- What are the major risks to the European economy's growth, and which one is considered particularly concerning?
- Protectionism, particularly from the United States, and the ongoing war in Ukraine are significant risks to the European economy. The potential for protectionist policies from the US is viewed as especially harmful to both the US and EU economies.