04 Feb 2016
ECONOMIC FORECAST – 04 FEBRUARYBrussels Daily
The European economy is now entering its fourth year of recovery and growth continues at a moderate rate, driven mainly by consumption. At the same time, much of the world economy is grappling with major challenges and risks to European growth are therefore increasing.
At the same time, much of the world economy is grappling with major challenges and risks to European growth are therefore increasing.
The Commission’s winter forecast shows that the overall growth outlook has changed little since the autumn but that the risk that growth could turn out worse than forecast has risen, mainly as a result of external factors. In the euro area, growth is projected to increase to 1.7% this year from 1.6% last year, and to climb to 1.9% in 2017. EU economic growth is forecast to remain stable at 1.9% this year and rise to 2.0% next year.
Certain factors supporting growth are now expected to be stronger and last longer than previously assumed. They include low oil prices, favourable financing conditions and the euro’s low exchange rate. At the same time, risks to the economy are becoming more pronounced and new challenges are surfacing: slower growth in China and other emerging market economies, weak global trade as well as geopolitical and policy-related uncertainty. Read Economic Forecast here and slides here