European Commission Cuts EU Growth Forecast

The economy of the 18-country strong eurozone will grow by just 0.8% this year, the European Commission has said.

The forecast is below the 1.2% estimate made earlier this year. The commission has also has cut its growth forecast for 2015 to 1.1% from 1.7%.

EU vice president Jyrki Katainen said “the economic and employment situation is not improving fast enough”.

The report predicts that inflation in the eurozone will continue to be low and employment high.

Continuing weakness in France and Italy would keep the brakes on recovery, it said.

The EU executive said the eurozone’s economy would not now reach a growth rate of 1.7% until 2016.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza