It has cut its prediction for the 19-country bloc in 2016 to 1.7% from the 1.8% it had forecast in November.
That figure would still mark a moderate increase from the figure of 1.6% in 2015.
The
Commission said government spending had been unexpectedly high because
of the number of migrants arriving in Europe, which had boosted GDP.
But it warned that the crisis posed "major political challenges" that could undercut growth if not properly handled.
And
vice-president Valdis Dombrovskis said: "Europe's moderate growth is
facing increasing headwinds, from slower growth in emerging markets such
as China, to weak global trade and geopolitical tensions in Europe's
neighbourhood."
"It is important to continue structural reforms
that can help our economies grow, withstand shocks in the future and
improve job opportunities for our population."
The Commission cut
its inflation forecast for this year from 1.0% to 0.5%, even further
below the European Central Bank's target of about 2%. Consumer prices
fell by 0.3% in 2015, largely as a result of the fall in energy prices.
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