EU Likely To Avoid Recession Amid Unexpected Economic Growth - European Commission

ROME (UrduPoint News / Sputnik - 20th January, 2023) Economic growth in the European Union appears to be stronger than expected, allaying fears of a recession, European Commission Vice President Valdis Dombrovskis said on Friday.

The unexpectedly favorable economic conditions are driven by lower-than-expected energy prices and stability on the labor market, Dombrovskis told Italian newspaper La Stampa.

According to the European Statistical Office, the eurozone annual inflation was 9.2% in December 2022, compared to 5% for the same period in 2021.

Dombrovskis believes the best way out of the economic crisis for the EU would be to end hostilities in Ukraine, which implies more military and financial assistance to Kiev, he told the Italian newspaper.

The official added that the bloc has already allocated 18 billion Euros ($19.5 billion) to Ukraine.

The EU is currently facing a massive energy crisis and surging inflation as part of the post-pandemic global economic recession. The situation further deteriorated in the wake of the Ukraine crisis, as hostilities and Western sanctions against Moscow led to disruptions in supply chains and resulted in a spike in energy prices worldwide.