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25 Feb 2014
European Commission raises Eurozone growth outlook
FXStreet (Łódź) - According to the spring growth forecasts released on Tuesday by the European Commission, the euro area economy should expand by 1.2% in 2014 and by 1.8% in 2015, which in both cases is 0.1% higher than the previous projections.
The 28-nation European Union was also seen growing 0.1% more than expected in the November report, by 1.5% this year and by 2% the next.
Spain's economic revival is to be the most notable, as its 2014 growth outlook had been raised from 0.5% to 1%. Greece is expected to exit recession this year with its economy expanding by 0.6%. Only Cyprus and Slovenia will still experience GDP contraction, by 4.8% and 0.1% respectively.
"The strengthening of domestic demand this year should help us to achieve more balanced and sustainable growth,” European Commissioner for Economic and Monetary Affairs Olli Rehn commented following the release of the report. “Rebalancing of the European economy has been progressing and external competitiveness is improving, particularly in the most vulnerable countries."
The European Commission also lowered its inflation forecast for 2014 to 1%, from 1.5% seen in November, but Rehn remarked that Eurozone deflation woes were "rather distant"
The 28-nation European Union was also seen growing 0.1% more than expected in the November report, by 1.5% this year and by 2% the next.
Spain's economic revival is to be the most notable, as its 2014 growth outlook had been raised from 0.5% to 1%. Greece is expected to exit recession this year with its economy expanding by 0.6%. Only Cyprus and Slovenia will still experience GDP contraction, by 4.8% and 0.1% respectively.
"The strengthening of domestic demand this year should help us to achieve more balanced and sustainable growth,” European Commissioner for Economic and Monetary Affairs Olli Rehn commented following the release of the report. “Rebalancing of the European economy has been progressing and external competitiveness is improving, particularly in the most vulnerable countries."
The European Commission also lowered its inflation forecast for 2014 to 1%, from 1.5% seen in November, but Rehn remarked that Eurozone deflation woes were "rather distant"