Malta Digital Skills and Jobs Platform (LISP)

Employment and Social Developments in Europe

The EU economy performed relatively well in 2022, despite Russia’s war of aggression against Ukraine prompting skyrocketing energy prices, supply chain disruptions, and related increases in the cost of living. The EU economy grew by 3.5% in real terms, exceeding previous expectations. After strong Gross Domestic Product (GDP) growth in the first half of 2022, economic expansion then slowed, with a smaller-than-projected contraction in the final quarter. Energy prices stabilised towards the end of the year, which, combined with a predicted decrease in 2023, improved the economic outlook for 2023 and 2024. Significant risks remain, notably linked to rapidly rising prices for food and services, potential new increases in gas prices, and tight labour markets.