As the EU Economy Picks Up, Brexit Clouds the U.K.’s Forecast

As the EU Economy Picks Up, Brexit Clouds the U.K.’s Forecast
European Commission President Ursula von der Leyen meets with British Prime Minister Rishi Sunak during the U.N. COP27 Climate Change Conference, in Sharm el-Sheikh, Egypt, Nov. 7, 2022 (Press Association photo by Steve Reigate via AP Images).

The European Union got a welcome bit of good news this week with a surprise revision to the European Commission’s economic outlook. With natural gas prices dropping significantly, the commission is now predicting the union will narrowly avoid a recession and has already passed peak inflation.

It may be cold comfort to EU citizens currently reeling from inflation and high energy prices, but the news means that, according to experts, Europe can already see the light at the end of the tunnel.

“Exceptionally mild weather, a better than previously expected turnout for growth at the end of last year, and improving economic sentiment suggest that the EU economy is thus set to narrowly escape the technical recession that was projected back in autumn,” Economy Commissioner Paolo Gentiloni said at a press conference Monday. Gentiloni added that the surprising turnaround proves “the remarkable resilience of the EU economy to the headwinds unleashed by Russia’s war against Ukraine and in particular the energy crisis,” and emphasized that the 3.5 percent growth projected in the EU is higher than for both the U.S. and China.

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