Economy

European Commission cuts growth forecast for eurozone

European Commission cuts growth forecast for eurozone”

Growth was also favored by fiscal policy measures, which made household disposable income in a number of Member States rising.

Besides Malta, whose economy is predicted to grow by 5.3 per cent this year, the highest growth rates will be seen in emerging Europe, where growth in all member states will be far higher than the European Union average.

External risks included the extended economic confrontation between the USA and China, together with the elevated uncertainty around United States trade policy, but also the tensions in the Middle East, which raised the potential for significant oil price increases.

It is now predicting 1.2% GDP growth for the eurozone in 2019.

Pierre Moscovici, EU Commissioner for Economic and Financial Affairs, told a news conference "the European economy continues to expand against a hard global backdrop". Domestic demand, in particular household consumption, continues to be a driving force for economic growth in Europe thanks to the continuing increase in the labor market.

France's economy will expand 1.3 percent this year and 1.4 percent in 2020, the commission estimated, leaving unchanged its forecast for this year but lowering the estimate for the next, earlier seen at 1.5 percent. "Due to the assumed fall in fuel prices, energy prices are expected to have a somewhat lower impact on inflation than previously forecast", the Commission said.

The European Commission kept its growth forecast unchanged at 1.2% on Wednesday (10 July) but revised downwards inflation to 1.3% for this year and the next, strengthening the case for further monetary stimulus as global economic risks worsen.

"This could lead to rapid tightening of global financial conditions", he added.

Valdis Dombrovskis, vice president for the euro and social dialogue, said: "All EU economies are still set to grow this year and next, even if the robust growth in Central and Eastern Europe contrasts with the slowdown in Germany and Italy".

These factors continued to negatively affect the confidence in the manufacturing sector, which is most exposed to global trade, and this is expected to reduce growth prospects for the remainder of the year. Inflation in Lithuania is projected at 2.2 percent this year and 2.1 percent in 2020.

The European Commission's next economic forecast will be the autumn economic forecast in November 2019.



Like this

loading...
loading...

Latest


10 Июля 2019
Metal straw death: Elena Struthers-Gardner killed as straw impaled brain
She was impaled by the straw, which caused a fatal traumatic brain injury . "I called 999 and requested an ambulance", she said. She begged the coroner to consider issuing a warning to the public about the hazardous nature of metal eco straws.

10 Июля 2019
'Teen Mom' Star Amber Portwood Allegedly Went After Boyfriend With a Machete
News of Portwood's arrest broke shortly after she was hauled in by police, but details have taken a bit longer to surface. Glennon stated he was holding [the baby] and he turned to the side to avoid [the baby] getting hit with the shoe".

10 Июля 2019
Bond yields creep higher as markets wait for Fed signals
The Fed has raised rates nine times since 2015, four increases coming under Powell's leadership. "He's not doing that". "Pack up. Powell stressed that the USA economy is still growing, albeit at a slower pace, as a record-long expansion begins its 11th year.

10 Июля 2019
Moment plane engine in U.S. failed caught on camera
Passenger Avery Porch told WMAR-TV that people were very frightened. "I was about to be the first person to jump off". Passenger Jack Leonard told ABC 11 , "We heard and felt everything ".

10 Июля 2019
Doctor Shares 'Offensive' Outfit She Was Told To 'Cover Up' On Flight
Once home, Dr Rowe uploaded two photos of herself in the outfit to Twitter where has been flooded with messages from support. Rowe, meanwhile, has said she was thankful for the "outpouring of love" she's received since sharing the story.

10 Июля 2019
Bank of Canada holds rates, frets about trade war damage
The changes, including stricter inspections on Canadian goods by Chinese authorities, have come amid a bilateral diplomatic dispute.

10 Июля 2019
Stranger Things 3 sets new Netflix streaming record
Meanwhile, for those wanting an extra taste of the Stranger Things world, Coca-Cola is bringing Hawkins to Shoreditch. As we said, it's pretty obvious all these things are on the table considering how the season ended.

10 Июля 2019
This Transforming Smartwatch Can Become A Tablet: Patent
There are four compartments to the device in smartwatch mode with each of the compartments storing a pair of screen tiles. The patent shows a rectangular shaped smartwatch that has a thicker than usual casing underneath the display.

10 Июля 2019
No One On US Women's Soccer Team Wants To Visit WH
She was asked if she would accept a still hypotheical invitation to the White House from President Donald Trump. Alexandria Ocasio-Cortez's offer to visit the Capitol instead. "Everyone that I've talked to, yeah", she said .

10 Июля 2019
Samsung Galaxy S10 Announces Six New DApps
It has directed the users to have the latest Snapchat version and latest device OS for updates. And since these updates got live, a new Snapchat issue is troubling Galaxy S10 users.