European Commission cuts euro zone growth forecast, blames U.S. trade wars

|By:, SA News Editor

The European Commission cuts Eurozone forecasts to 2.1% in 2018 from prior forecast of 2.3%, citing among the top causes for its revision trade tensions with the United States and rising oil prices leading to higher inflation.

The rising oil prices have also contributed to the slowdown and are expected to push euro zone's inflation up to 1.7% in 2018 and 2019 higher from the previously estimated 1.5% in 2018 and 1.6% in 2019.

The slowdown of the euro zone economy is set to affect all major economies of the bloc, but is expected to hit Italy harder, as the country will record the lowest growth rate in Europe, matched only by Britain among all 28 EU countries.

Source: Investing.com

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