EU cuts growth forecast for eurozone

|By:, SA News Editor

The European Commission has lowered its 2014 eurozone GDP forecast to 1.1% from a prediction in May of 1.2%, while it expects unemployment of 12.2% vs 12.1% prior.

The EC also estimates that the eurozone's economy will shrink 0.4% this year following a decline of 0.7% in 2012.

The commission forecast inflation of 1.5% for next year and 1.4% in 2015, with both figures well below the ECB's target of just under 2%.

The EC projects that Germany, Belgium, Estonia and Ireland will gain momentum in 2014, although it warned that Spain, Greece, Italy and Portugal will experience much weaker growth.

The euro is -0.1% at $1.3505.

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