European Economy Projected to Grow Amidst Low Unemployment
The European Commission forecasts a 1.5% GDP growth for the EU in the upcoming year, driven by record-low unemployment levels. Eurocommissioner Paolo Gentiloni noted that by the end of this year, eight million more people will be employed compared to pre-pandemic levels, benefiting particularly women, older workers, and migrants. However, productivity is expected to decline this year before a modest recovery. Risks such as U.S. protectionism under potential President Donald Trump and the ongoing conflict in Ukraine also pose challenges to this optimistic outlook.