Eurozone economy grows in 2022 (a surprise)

The Eurozone economy grew in the final quarter of 2022 despite economists´ predictions of a slowdown, fuelling hopes that the region will avoid a recession. A more favourable climate with public aid cushioned the impact of rising energy prices, helping the economy grow by 0.1% between the third and fourth quarters, according to official data released by Eurostat.

The growth recorded was better than the 0.1 per cent drop that had been expected by economists consulted by Reuters. They had forecast another quarter of contraction in the first three months of 2023. Bert Colijn, chief economist at ING bank, said the Eurozone economy is showing "incredible resilience" in the wake of the energy crisis that gained momentum with the outbreak of war in Ukraine almost a year ago. 

The latest data leads to the conclusion that the single currency region has managed to grow in all quarters of 2022 and 3.5% year-on-year. John Leiper, chief investment officer at Titan Asset Management, called this "a great achievement".

Businesses and households also faced higher borrowing costs as the European Central Bank (ECB) raised key interest rates by 250 basis points (2.5%) in the second half of last year to combat rising inflation - and raised them again already this year by 50 basis points.