European Union increases growth forecast as eurozone dodges recession

EU's economy commissioner, Paolo Gentiloni has said that although the eurozone's inflation and growth figures aren't as bad as expected, the situation remains fragile as the war in Ukraine continues to affect markets. © AFP

Europe's economy will grow more than previously forecast this year as it avoids a winter recession, with inflation expected to ease and gas prices continue to fall.

The European Commission said this Monday that the 20-nation eurozone's economy is now expected to expand by just under one percent instead of 0.3 percent, as "favourable developments" helped the single-currency area weather the fallout from Russia's invasion of Ukraine.