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Tuesday, November 4, 2014

Eurozone Economic Forecast cut by European Commission



The economy of the 18-country strong eurozone will grow by just 0.8% this year, the European Commission has said.

The forecast is below the 1.2% estimate made earlier this year. The commission has also has cut its growth forecast for 2015 to 1.1% from 1.7%.

Cashier counting euro notesEU vice president Jyrki Katainen said "the economic and employment situation is not improving fast enough".

The report predicts that inflation in the eurozone will continue to be low and employment high.

Continuing weakness in France and Italy would keep the brakes on recovery, it said.
The EU executive said the eurozone's economy would not now reach a growth rate of 1.7% until 2016.

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