European Commission forecasts moderate recovery in eurozone


The European Commission expects eurozone GDP to grow 1.2% this year and 1.7% in 2015 following two consecutive years of contraction. However, the 2015 prediction is down from a prior forecast of 1.8%.

On the other hand, the EC upgraded its outlook for Spain to growth of 2.1% next year from a previous estimate of 1.7%.

"Overall, the outlook has improved, but it remains conditional on continued credible action on several fronts at national and EU levels," says the EC's Marco Buti.

The modest growth in the eurozone will help unemployment fall to 11.8% in 2014 and 11.4% in 2015 from 12% in 2013, the EC said.

The commission cut its inflation forecast to 0.8% this year and 1.2% next year - the ECB's target is just under 2% - but it believes that the probability of deflation is low.

The euro is +0.05% at $1.3876.

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Comments (2)
  • june1234
    , contributor
    Comments (4406) | Send Message
     
    http://bit.ly/RgA1nY. The EU sentiment index falls for the 3rd month in a row
    5 May 2014, 07:04 AM Reply Like
  • User 353732
    , contributor
    Comments (5161) | Send Message
     
    For the past decade the forecast has always been for a recovery and every year the actual performance is below to well below "expectations".
    The EU is now economically stagnant and demographically and geo strategically in decline. Each year Europe matters less and Asia matters more.
    5 May 2014, 07:25 AM Reply Like
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