The
European Commission released its Spring 2019 Economic Forecast today, stating
that growth in the European economy may continue at a more moderate pace. This
continuation of growth is expected for a seventh year in a row as real GDP is
expected to grow in all EU Member States. Even though there is uncertainty on a
global scale, the domestic tendencies are expected to support the European
economy and growth may gather speed in 2020.
The main
points of the Economic Forecast are as follows:
·
Economic
activity in the EU slowed further in the second half of 2018 and was extended
at the start of 2019. Domestic demand was less affected and, as a result, employment
growth is expected to continue in the Euro area but at a slower pace.
·
From
1.9 percent in 2018, the GDP growth in the Euro area is expected to moderate to
1.2 percent this year and may pick up to 1.5 percent.
·
Global
GDP growth outside the EU is expected to decrease from 3.9 percent in 2018 to
3.6 percent in 2019.
·
Investment
is forecast to continue growing but at a slower annual pace.
·
Euro
area exports are likely to remain sluggish in the near term.
·
Inflation
is expected, on average, to be at 1.4 percent for 2019 and 2020. This was the
rate of inflation for the first quarter of this year.
These
forecasts are based on the assumption that trade and policy uncertainty will
clear, or at least not escalate.
View the
complete forecast at https://ec.europa.eu/info/sites/info/files/economy-finance/ip102_en.pdf
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