European Economies Limp into 2023

It could have been worse.

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European Union Economic Update | Q4-2022
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The European Union’s economy shrank slightly in the final quarter of 2022. It could have been worse. Most countries tolerated the sharp rise in energy prices without a major hit to growth. Employment also climbed slightly in both the eurozone and the EU.

However, the economic downturn is most severe in the countries of Eastern Europe, which are more affected by the Russia-Ukraine war. Poland saw the largest GDP drop, though the Polish labor market remained stable and industrial and construction output increased compared with the third quarter. It remains to be seen how well Europe will withstand monetary tightening, the war, and warning signs in the banking sector, among other things, in 2023.

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Geopolitical Futures (GPF) was founded in 2015 by George Friedman, international strategist and author of The Storm Before the Calm and The Next 100 Years. GPF is non-ideological, analyzes the world and forecasts the future using geopolitics: political, economic, military and geographic dimensions at the foundation of a nation.