Eurozone Economy Poised for Turnaround in 2024, Driven by Growth in Southern Countries

According to new forecasts from the European Commission, the eurozone economy is projected to experience a turnaround in 2024. This will be driven by faster growth in southern European countries, which will help balance out the continued stagnation in Germany. The Commission predicts that the eurozone will grow by 0.8 percent this year, an improvement from the 0.4 percent growth seen last year.

Looking ahead to next year, the Commission expects a growth rate of 1.4 percent, slightly lower than its previous forecast. Germany, the largest economy in the eurozone, is anticipated to remain stagnant in 2024 after experiencing a mild recession last year. The French economy is also expected to remain subdued. On the other hand, countries in the periphery such as Portugal, Spain, and Greece are predicted to see stronger growth rates of 1.7 percent, 2.1 percent, and 2.2 percent respectively.

The economic expansion in the southern rim of the EU is outpacing growth in the northern and western regions, leading to further economic convergence within the EU. Commissioner for the economy, Paolo Gentiloni, mentioned that he expects a gradual acceleration in growth as private consumption is supported by declining inflation, recovering purchasing power