“The dark clouds are dissipating,” her comment. Deutsche Bank For European economyas he keeps updating his predictions for eurozone development this year by one percentage point, up 0.5%. For 2024, the German investment house expects 1% growth.

Eurozone to avoid recession this winter as it deescalates energy crisis Analysts say they are improving near-term growth prospects in three key channels:

– Less uncertainty.

– Reducing the shock to real income.

Deutsche Bank continues to raise its growth forecast for the eurozone this year by one percentage point to 0.5%.

– Less shock to European business competitiveness. According to Deutsche Bank, there are two other factors, albeit to a lesser extent, influencing growth:

– The reopening of the Chinese economy after the coronavirus lockdown, which is expected to add about 0.2 percentage points to eurozone GDP in 2023.

– The largest monetary tightening by the European Central Bank. Deutsche Bank has revised down its forecasts, where it expects the ECB interest rate to fall to 3.25% from 3%, while seeing the risks of even higher rates.

analysts however, they estimate that by mid-2024, the ECB will bring inflation back to its 2% target, allowing it to start cutting interest rates by 25 basis points per quarter to 1.75%. Deutsche Bank estimates that the global economy will grow by 2.7% in 2023 as the war in Ukraine and monetary tightening by central banks continue to weigh on the outlook. On the contrary, the opening of China contributes to higher forecasts. In the US, the house is looking to slow down before the economy enters recession in the second half of 2023, with that year ending up 1% and 0.3% in 2024. Therefore, Deutsche Bank expects the Fed to raise rates by 25 basis points in March and May, with the value of money ending at 5.125% in the second quarter of 2023.