5 Nov 2013
EU cuts Eurozone growth forecast for 2014
FXstreet.com (Barcelona) - The European Commission released its latest growth forecasts today, according to which the Eurozone economy will grow by 1.1% next year, compared with the previous prediction of +1.2%. The EU expected to expand by 1.4% in 2014 and by 1.9% in 2015.
The EU commissioner for economic and monetary affairs Olli Rehn commented on the forecasts by saying that there are increasing signs of a recovery in the area but although “the financial market situation has improved significantly and interest rates have declined for vulnerable countries, this has not yet fed through to the real economy." That´s why growth will pick up only gradually, he stated.
Rehn added that unemployment is still excessively elevated – the European Commission expects it to remain at 12.2% this year and in 2014, before falling to 11.8% in 2015.
As far as the annual Eurozone deficit is concerned, the European Commission believes it will slide to 2.5% next year and further down to 2.4% in 2015.
The EU commissioner for economic and monetary affairs Olli Rehn commented on the forecasts by saying that there are increasing signs of a recovery in the area but although “the financial market situation has improved significantly and interest rates have declined for vulnerable countries, this has not yet fed through to the real economy." That´s why growth will pick up only gradually, he stated.
Rehn added that unemployment is still excessively elevated – the European Commission expects it to remain at 12.2% this year and in 2014, before falling to 11.8% in 2015.
As far as the annual Eurozone deficit is concerned, the European Commission believes it will slide to 2.5% next year and further down to 2.4% in 2015.