A more positive picture of the EU economy has been predicted: it is to avoid recession with lower inflation and higher growth than had been forecast.
The bloc will now avoid a technical recession, the EU said in its winter economic forecast, which is when the economy goes through a six-month period of economic contraction.
Recession had been forecast in the EU’s last economic forecast in November, but instead the annual growth rate for 2022 is estimated to be 3.5%.
Growth will continue throughout this year, the latest forecast says. The economy across the 27 countries will grow 0.8% in 2023, the union now expects – up from the 0.3% predicted in the autumn economic forecast.
The growth rate for 2024 remains unchanged at 1.6%.
Similarly, inflation has reached its peak and also been revised downwards for both this year and next, and unemployment remains at an all-time low at 6.1%
The rate of price increases dropped from 11.1% in November to 10.4% in December last year, but it’s still up from 5.3% a year before.
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The decline was mostly driven by the slowing rate of energy price increases. Next year, inflation is forecast to fall to 6.4% in 2023 and to 2.8% in 2024, meaning higher prices will remain.
The more positive outlook is down to a reduced reliance on gas combined with lower gas prices, despite energy costs overall remaining high. More power was sourced from elsewhere and gas consumption dropped, which along with cheaper wholesale gas prices has helped growth.
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‘This doesn’t mean a positive overall outlook’
But Paolo Gentiloni, the European commissioner for the economy, warned that times were still tough, with inflation only releasing “its grip on purchasing power” in a gradual way.
While the outlook is “less negative than we expected”, Mr Gentiloni said, “this doesn’t mean we have a positive overall outlook”.
Following Russia’s invasion of Ukraine, EU countries rushed to reduce their dependency on the gas bought mostly from Moscow. This involved reducing power consumption by measures such as not lighting certain buildings at night and not heating gas-powered private swimming pools.
Gas prices skyrocketed following the invasion and reached a high in August as Vladimir Putin threatened to cut supplies, before he actually did so at the end of the month.
A bystander hailed a hero after he tackled and disarmed one of the gunmen in the Bondi Beach shooting is a shop owner.
The man, named by a relative as 43-year-old Ahmed al Ahmed, was seen in a video running up to the attacker from behind and then grabbing the shotgun from his hands before pointing the weapon back at him.
The footage then showed the terrorist heading towards a bridge where another gunman was located, while the bystander placed the gun beside a tree.
Image: Ahmed al Ahmed (in a white T-shirt) is seen in a video running up to a gunman from behind
Mr Ahmed, who was wearing a white T-shirt, was shot twice in the incident and was due to have surgery, his cousin, Mustafa, has revealed.
In a video on 7News, Mr Ahmed appeared to have a bloodied arm and hand, and was helped by other people near the scene in the Australian city.
At least 11 people were killed and 29 others injured in the attack when two gunmen opened fire from a bridge on crowds at a Jewish event around 6pm local time on Sunday evening.
More than 1,000 people had been at the gathering which was celebrating the festival of Hanukkah.
Image: Mr Ahmed manages to get the gun off the terrorist
Image: The bystander then points the weapon at the attacker who moves away towards a bridge
A gunman was killed and another was in a critical condition following the shooting.
One of the suspects was 24-year-old Naveed Akram.
His driver’s licence says he lives in Bonnyrigg, a suburb of Sydney. The identity of the other suspected attacker is not known.
Image: Naveed Akram, 24, was one of the suspects
Mustafa said father-of-two Mr Ahmed, who owns a fruit shop in the Sydney suburb of Sutherland, did not have any experience with guns but was just walking past when he decided to step in.
He told 7News: “He’s in hospital and we don’t know exactly what’s going on inside.
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One of the suspected gunmen has been named as 24-year-old Naveed Akram.
The footage of the bystander’s actions spread quickly on social media as people praised the man for his bravery, saying his actions had potentially saved many lives.
“Australian hero (random civilian) wrestles gun off attacker and disarms him. Some people are brave and then some people are… whatever this is,” one person said on X, sharing the video.
“This Australian man saved countless lives by stripping the gun off one of the terrorists at Bondi beach. HERO,” another said.
Chris Minns, the premier of New South Wales state, where Sydney is located, said it was the “most unbelievable scene I’ve ever seen”.
“A man walking up to a gunman who had fired on the community and single-handedly disarming him, putting his own life at risk to save the lives of countless other people.”
“That man is a genuine hero, and I’ve got no doubt that there are many, many people alive tonight as a result of his bravery,” he added.
The country’s prime minister Anthony Albanese praised the actions of Australians who had “run towards danger in order to help others”.
“These Australians are heroes and their bravery has saved lives,” he told a news conference.
Messages were sweeping across Sydney within minutes of the attack at Bondi Beach.
Parents messaged their children and teenagers, who had been enjoying a late afternoon swim at Bondi.
Witnesses said police were on the scene quickly, and the streets of Sydney’s eastern suburbs were full of police cars and ambulances on their way to Bondi.
When we arrived, there were still dozens of people processing what had happened, and everywhere – shock.
Witnesses told us that when the gunfire started some people took cover in the North Bondi Surf Life Saving Club. Once the threat was over, lifeguards helped the injured and used surfboards to carry them out.
Image: Witnesses tell Sky’s Nicole Johnston of Bondi ‘warzone’
Some people were clearly traumatised and provided graphic detail of witnessing the shooting and seeing people killed in front of them.
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A photographer, Danny, was covering the Jewish holiday event.
He said he “locked eyes” with one of the gunmen, who then fired towards him. Danny said he was grazed by a bullet. He kept filming during the shooting, while taking cover.
Sam, from France, was working at Bondi. He went to the scene of the attack and saw almost a dozen people lying on the ground covered in blood. Sam described it as like a “war zone”.
Rabbi Lei Wolff, from Central Synagogue in Sydney, went to Bondi as soon as he heard about the mass shooting. A dear friend of his, Rabbi Eli Schlanger, was killed in the attack.
Rabbi Wolff has called on people around the world to stand with Australia’s Jewish community against terrorism.
A senior Hamas commander who was one of the architects of the 7 October 2023 attacks on Israel has been killed in a strike on Gaza City, according to the country’s military.
Raed Saad was targeted in response to an attack by Hamas in which an explosive device injured two soldiers on Saturday, Israeli Prime Minister Benjamin Netanyahu and Defence Minister Israel Katz said in a joint statement.
It is the highest-profile killing of a senior Hamas figure since the Gaza ceasefire came into effect in October.
Gaza health authorities said the attack on a car in Gaza City killed five people and wounded at least 25 others, but there has been no confirmation from Hamas or medics that Saed was among the dead.
Image: Raed Saed
Hamas condemned the attack in a statement as a violation of the ceasefire agreement but stopped short of threatening retaliation.
An Israeli military official described Saed as a high-ranked Hamas member who helped establish and advance the group’s weapons production network.
“In recent months, he operated to re-establish Hamas’ capabilities and weapons manufacturing, a blatant violation of the ceasefire,” the official said.
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The 10 October ceasefire has enabled hundreds of thousands of Palestinians to return to Gaza City’s ruins after a war that began after Hamas-led militants killed 1,200 people, most of them civilians, and seized 251 hostages in an attack on southern Israel.
Israel’s retaliatory offensive has killed more than 70,700 Palestinians, most of them civilians, according to health officials in Gaza.
Israel has pulled troops back from city positions, and aid flows have increased, but violence has not completely stopped.
Palestinian health authorities say Israeli forces have killed at least 386 people in strikes in Gaza since the truce, while Israel says three of its soldiers have been killed.