London | Frankfurt | The likelihood that the eurozone will fall into a deep recession this European winter is receding, according to economists, who have scaled back their projections as greater fiscal support from governments, lower gas prices and a mild autumn help to improve the bloc’s outlook.

Most forecasters still expect eurozone output to contract in the coming quarters. The European Commission said earlier this month that it expects the economy to shrink by 0.5 per cent in the fourth quarter and by 0.1 per cent in the opening three months of next year – in line with estimates by private-sector analysts.

Financial Times