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5 Feb 2015
European Commission upgrades growth forecasts, cuts inflation outlook
FXStreet (Mumbai) - The European Commission (EC), in its winter forecasts, upgraded its Eurozone growth forecasts for 2015, while predicting growth for every country in the EU in 2015 for the first time since 2015.
The EC raised its 2015 GDP forecast to 1.3% this year from the 1.1% seen in November and to 1.9 % in 2016 from an earlier 1.7%. The commission said that growth was 0.8% last year. The unemployment rate is expected to fall to 11.2% from 11.3%.
Coming to inflation, the EC forecasts that consumer prices in the euro zone would fall 0.1% this year after a mere 0.4% increase in 2014, but will rise by 1.3% in 2016.
Valdis Dombrovskis, Commission vice president said, "The right economic conditions are in place for sustained growth and job creation. Following the difficult policy choices governments have made due to the crisis, the effects of reforms are emerging.”
The EC raised its 2015 GDP forecast to 1.3% this year from the 1.1% seen in November and to 1.9 % in 2016 from an earlier 1.7%. The commission said that growth was 0.8% last year. The unemployment rate is expected to fall to 11.2% from 11.3%.
Coming to inflation, the EC forecasts that consumer prices in the euro zone would fall 0.1% this year after a mere 0.4% increase in 2014, but will rise by 1.3% in 2016.
Valdis Dombrovskis, Commission vice president said, "The right economic conditions are in place for sustained growth and job creation. Following the difficult policy choices governments have made due to the crisis, the effects of reforms are emerging.”