Dutch financial services company Rabobank estimated on Thursday that the euro area's economy will avoid a recession this year by expanding by 0.3% and an additional 0.9% in 2024. The 2023 forecast is significantly higher compared to the previously expected drop of 0.5%.
"Lower energy prices, generous government subsidies and overall economic resilience will boost economic growth in the short run. As a consequence, we expect inflation to stay elevated for longer, just as interest rates," Rabobank economists noted in the bank's report.
The Eurozone's economy was confirmed to narrowly avoid a decline in the final quarter of 2022, per the report published last month.
