Defense spending and competition with the US: what awaits the EU economy in 2023

Eurozone countries in 2023 will be forced not only to fight inflation, but also to increase military spending and compete with the United States for industrial producers – experts have no doubt that Europe will face a recession, but most do not yet predict a deep and prolonged recession

The eurozone economy will enter recession in 2023. By the end of 2022, the inevitability of a recession was recognized, among other things, by official representatives of the EU and major international financial institutions. For example, in November, the European Commission (EC) predicted that the Eurozone GDP would decline for at least two quarters in a row – Q4 2022 and Q1 2023, follows from the EC report. And at the end of December, Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), in an interview with CBS, said that half of the EU countries will face an economic downturn in 2023. Only the depth and duration of the recession remains in question so far – most economists believe that there will be no recession severe and prolonged (the EC expects EU GDP growth by 0.3% at the end of the year), but some warn of the onset of a structural crisis that could drag on for several years. Vedomosti asked experts what awaits the European economy in 2023.