EU raises eurozone growth outlook despite 'high uncertainty'

The forecast said the positive outlook came in large part thanks to an improving global economy, with the United States and China lifting Europe.

EU raises eurozone growth outlook despite 'high uncertainty'

World Bulletin / News Desk

The EU raised Thursday its growth forecast for eurozone, saying the economic recovery was gaining strength despite the elevated uncertainties of Brexit and the protectionist policies of US President Donald Trump.

But the commission warned in its statement that the "uncertainty surrounding the economic outlook remains elevated".

The 19-country eurozone will grow by  1.7 percent in 2017 followed by 1.8 percent in 2018, the European Commission said in its spring economic forecast.

That is compared with predictions made in the winter of 1.6 percent growth in 2017 and 1.8 percent in 2018.

The protectionist stance on world trade by the Trump administration, Britain's divorce from the European Union, and the fragility of European banks could all negatively impact the future of the economy, the commission said.

The 28-nation bloc as a whole would grow by 1.9 percent in both 2017 and 2018, the commission said.

"It is good news too that the high uncertainty that has characterised the past twelve months may be starting to ease. But the euro area recovery in jobs and investment remains uneven," said EU Economy Commissioner Pierre Moscovici.

Souring the mood, bailed-out Greece, which swung out of recession last year but is now at the centre of fresh fears for the eurozone, saw its growth forecast cut sharply to 2.1 percent in 2017 and 2.5 percent in 2018.

Güncelleme Tarihi: 11 Mayıs 2017, 11:28
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