July 14, 2019

Anna Murray 

The European Commission slashed the next year's economic growth on 10th revised to 1.4% from 1.5% predicted in May, and this year's forecast will remain at 1.2%, but not as good as 1.9% last year. As the economic outlook weakens and the inflation forecast is revised, the forecast values ​​for this and next year are revised down from the original estimate of 1.4% to 1.3%.

The Commission said that the risk in the euro zone has increased. Most of it comes from the "high uncertainty" of US trade policy. The United States continually threatens to impose punitive tariffs on a wide range of products. The main reason for the slowdown in the Eurozone economy is the weaker growth in Germany, the largest economy in the region, and in Italy, the third largest economy. The prediction of economic growth rate in Germany and Italy will be the lowest in the Eurozone this year. Germany's growth rate will slow down from 1.4% last year to 0.5%. It is expected to return 1.4% next year. Forecasts for Italy’s growth remains unchanged at 0.1% this year, and it is expected to grow to 0.7% next year, but it is still the lowest in the Eurozone.

The Commission also pointed out that the economy is expected gradually picking up later this year, but now it seems that the rebound has weakened. The global manufacturing cycle has not peaked yet. And due to protectionism, the prospects of trade and investment continue to be bleak and uncertainty. These increased medium-term outlooks for China and geopolitical tensions in the Middle East.

Photo:Webshot.