5 Nov 2015
European Commission cuts EMU 2016 growth and inflation forecasts
FXStreet (Mumbai) - The European Commission (EC) revised its Euro area growth and inflation forecasts lower, but said the region is witnessing slow recovery from the crisis in the wake of the downturn in China and other emerging markets.
The EC now sees euro area will grow by 1.6% in 2015, rising to 1.8% next year, but revised 2016 GDP forecast lower from 1.9% to 1.8%.
Key Points
Germany 2015 GDP seen at 1.7% (prev 1.9%); 2016 1.9% (prev 2.0%); 2017 at 1.9%
UK 2015 GDP seen at 2.5% (prev 2.6%); 2016 2.4% (prev 2.4%); 2017 at 2.2%
France 2015 GDP seen at 1.1% (prev 1.1%); 1.4% (prev 1.7%); 2017 at 1.7%
2015 EMU HICP seen at 0.1% (prev 0.1%); 2016 1% (prev 1.5%); 2017 at 1.6%
The EC now sees euro area will grow by 1.6% in 2015, rising to 1.8% next year, but revised 2016 GDP forecast lower from 1.9% to 1.8%.
Key Points
Germany 2015 GDP seen at 1.7% (prev 1.9%); 2016 1.9% (prev 2.0%); 2017 at 1.9%
UK 2015 GDP seen at 2.5% (prev 2.6%); 2016 2.4% (prev 2.4%); 2017 at 2.2%
France 2015 GDP seen at 1.1% (prev 1.1%); 1.4% (prev 1.7%); 2017 at 1.7%
2015 EMU HICP seen at 0.1% (prev 0.1%); 2016 1% (prev 1.5%); 2017 at 1.6%