MNI BRIEF: EU Economy Resilient, But Downside Risks: Gentiloni

EU Economy Commissioner Paolo Gentiloni told G20 finance ministers meeting in India Monday that the European economy remained resilient despite slowing global growth, although downside risks remained elevated.

“We expect global growth to slow further in 2023. Against this challenging context, the EU economy is showing resilience. Overall, we expect subdued growth this year, gathering pace in 2024.”

Gentiloni noted that EU labour markets remain “particularly strong” but said “uncertainty and downside risks to the outlook remain elevated”. The commissioner said that fiscal policies going forward would need to be “appropriately calibrated and support monetary policy in curbing inflation”. Gentiloni said that the fiscal stance in the EU following three strongly expansionary years is expected to “gradually turn contractionary”.