EU Says Euro Zone Growth to Slow Amid Risks From U.S., Italy, Brexit

• 11.08.2018, 17:11
•  Europe,  World

Reuters

 Euro zone growth is expected to slow in the coming years as the bloc faces risks from U.S. economic policies, Britain’s unclear divorce terms from the EU and free-spending plans in high-debt members, like Italy, the EU Commission said, Reuters reports.

In its quarterly economic forecasts released on Thursday, the EU executive revised down its growth estimates for the euro zone next year and predicted a protracted slowdown until 2020, the last year for which forecasts are available.

The revision, although expected, might complicate the European Central Bank’s plans to wind down its stimulus program this year, but in more positive news for the ECB the Commission forecast higher inflation of 1.8 percent this year and next in the bloc. The ECB targets a rate close to 2 percent.

Under the forecasts, the euro zone will grow 2.1 percent this year after a 2.4 percent expansion in 2017. The slowdown will continue next year when growth is expected at 1.9 percent, slightly below the previous estimate of 2.0 percent.