EU economy projected to avoid recession

Published

2 years ago

February 13, 2023

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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.

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.

‘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.

Member states had agreed a voluntary plan to reduce gas consumption by 15%.

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.

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Elon Musk hints 80-hour-a-week DOGE job for ‘high-IQ revolutionaries’ will be unpaid

Published

58 mins ago

November 15, 2024

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Elon Musk hints 80-hour-a-week DOGE job for 'high-IQ revolutionaries' will be unpaid

“Super high-IQ revolutionaries” who are willing to work 80+ hours a week are being urged to join Elon Musk’s new cost-cutting department in Donald Trump’s incoming US government.

The X and Tesla owner will co-lead the Department Of Government Efficiency (DOGE) with former Republican presidential candidate Vivek Ramaswamy.

And in a post on X, the official DOGE account put out a call to arms for people to sign up and help “dismantle government bureaucracy”.

The post said: “We are very grateful to the thousands of Americans who have expressed interest in helping us at DOGE.

“We don’t need more part-time idea generators.

“We need super high-IQ small-government revolutionaries willing to work 80+ hours per week on unglamorous cost-cutting.

“If that’s you, DM this account with your CV. Elon & Vivek will review the top 1% of applicants.”

In a reply to an interested party, Mr Musk suggested the lucky applicants would be working for free.

“Indeed, this will be tedious work, make lost of enemies & compensation is zero,” the world’s richest man wrote.

“What a great deal!”

When announcing the new department, President-elect Donald Trump said Mr Musk and Mr Ramaswamy “will pave the way for my administration to dismantle government bureaucracy, slash excess regulations, cut wasteful expenditures, and restructure federal agencies”.

Mr Musk has previously made clear his desire to see cuts to “government waste” and in a post on his X platform suggested he could axe as many as three-quarters of the more than 400 federal departments in the US, writing: “99 is enough.”

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At least 10 dead after fire rips through retirement home in Spain

Published

58 mins ago

November 15, 2024

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At least 10 dead after fire rips through retirement home in Spain

At least 10 people have been killed after a fire broke out at a retirement home in northern Spain in the early hours of this morning, officials have said.

A further two people were seriously injured in the blaze at the residence in the town of Villafranca de Ebro in Zaragoza, according to the Spanish news website Diario Sur.

They remain in a critical condition, while several others received treatment for smoke inhalation.

Firefighters were alerted to the blaze at the residence – the Jardines de Villafranca – at 5am (4am UK time) on Friday.

Those who were killed in the fire died from smoke inhalation, Spanish newspaper Heraldo reported.

The residence is home to 82 elderly residents.

The blaze started in one of the rooms, Fernando Beltran, the national government’s top official in the region, told reporters.

All of the victims were elderly residents, he added.

Fire crews, paramedics and police officers remain on site, said a spokesperson for the regional government of Aragon who confirmed the fatalities.

It took firefighters several hours to extinguish the blaze, they said.

The cause of the fire is unknown and is being investigated.

World

At least 10 dead after fire rips through retirement home in Spain

Published

7 hours ago

November 15, 2024

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At least 10 people have been killed after a fire broke out at a retirement home in northern Spain in the early hours of this morning, officials have said.

A further two people were seriously injured in the blaze at the residence in the town of Villafranca de Ebro in Zaragoza, according to the Spanish news website Diario Sur.

They remain in a critical condition, while several others received treatment for smoke inhalation.

Firefighters were alerted to the blaze at the residence – the Jardines de Villafranca – at 5am (4am UK time) on Friday.

Those who were killed in the fire died from smoke inhalation, Spanish newspaper Heraldo reported.

The residence is home to 82 elderly residents.