On Thursday, the European Commission confirmed its forecast for the Eurozone GDP growth in 2018 and 2019 at 2.3% and 2% respectively, despite the weaker pace in the first quarter of the current year, which is perceived as temporary by the Commission experts, Interfax-Ukraine reports.
The European Commission also confirmed its forecast regarding the inflation across the currency block at 1.5% in the current year and 1.6% next year. The targeted inflation level set by the European Central Bank is at “slightly lower than 2%”.
In the European Commission report, favorable conditions for economic growth are listed. Particularly, the growth of real wages and the creation of new jobs facilitate the strengthening of the consumer sector, while businesses continue increasing investments.
“The European economy remains in good shape. However, the lowering risks for the forecast have grown considerably, - a member of the European Commission for economic and financial affairs Pierre Moscowici said while presenting the macroeconomic forecast at a meeting in Brussels. – I hope there will be no further escalastion of trade uncertainty”.
Further on, the economic growth is expected to remain strong across a range of sectors, as well as in certain nations, the Commission notes.
At the same time, after the International Monetary Fund, the European Commission warned of a threat of trade disputes and increased protectionism trends for the economy.
What concerns trade, such additional protectionist measures as tariffs and repressive policies may hurt the world trade and negatively affect the economic activity and well-being”,- the spring forecast of the organization reads.
The forecast of the economic growth across 27 European Union member states (excluding the United Kingdom) is confirmed at 2.5% for the current year and increased from 2.1% to 2.2% for next year.