EU release growth forecast - and it's a mixed bag

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By Oleksandra Vakulina  with Reuters
EU release growth forecast - and it's a mixed bag
Copyright  Reuters

Economic growth forecast for Europe is a story of a glass half empty or half full.

On the one hand the European economy is in its seventh consecutive year of growth and every EU country is set to grow. But on the other hand in some cases, like in Italy, this growth is 0.1%.

EU Commissioner for Economic and Financial affairs Pierre Moscovici admits - the block is now in a rather moderate growth phase: "This is perhaps the most important feature of our forecasts of this quarter: this lack of rebound marks a change from our previous forecasts. This reflects the shocks suffered by the euro area and we know that the impact of these shocks will take time to fade away so we will enter into a new, more moderate growth regime."

This year the European Commission expects the euro area to grow by 1.1% - a slight downgrade compared to its summer and spring forecasts.

The IMF is a little bit more optimistic, seeing a 1.2% growth this year.

The IMF says it is mostly due to anaemic growth in the Eurozone largest economy - Germany.