According to the International Monetary Fund (IMF), the European economy's growth rate is expected to slow down to 1.3% by the end of 2023. However, in 2024, the GDP of the EU countries is projected to increase by 1.5%, and by another 2.1% in 2025. Notably, the EU countries face an economic downturn. Despite this, the prospects for the eurozone are promising, and the bloc can deal with the stubborn economic growth. Economists believe that in the medium term, the EU economy is unlikely to face a severe recession. However, the immediate outlook is not rosy at all. The European economy is expected to undergo a so-called "soft landing," characterized by a smooth decrease in GDP and a gradual reduction in inflation. In the coming months, the EU is unlikely to return to pre-crisis consumer price levels as this may take several years, the IMF warns. The fund stated that the European Central Bank will play a key role in combating elevated prices. The regulator intends to stick to its current monetary policy tightening. Representatives of the ECB mentioned that "any discussion about lowering interest rates is clearly premature." Earlier, analysts from the German Federal Statistical Office (Destatis) highlighted an acceleration in the decline of industrial production in the country. By the end of September 2023, this indicator in Germany had decreased by 1.4% compared to August, significantly more than the 0.1% decrease experts had predicted. Moreover, the volume of industrial production in Germany plummeted by 2.1% quarterly, according to Destatis.
