The European Commission has significantly reduced the economic forecast for the Eurozone in 2019

Еврокомиссия значительно снизила экономический прогноз для еврозоны на 2019 год

Economic growth in the Eurozone in 2019 could reach 1.3 percent. In Brussels explained it a hard “Brekzita” and trade conflicts.

The European Commission significantly lowered its forecast for Eurozone GDP growth in the current year. Production volumes of 19 countries of the Eurogroup in 2019 will increase, presumably, by 1.3 percent, in 2020 – by 1.6 percent, said the Brussels office on Thursday, February 7. Even in the autumn, the European Commission forecast growth of 1.9% in 2019, and 1.7 per cent in 2020.

In all countries of the EU, according to Brussels, the economy will grow 1.5 percent this year and 1.7 per cent in the next (autumn forecast called figures of 1.9% in 2019, and 1.8 percent in 2020).

The Outlook change is due to the deterioration of appropriate assessments in relation to Germany, Italy and France. According to the forecast of the European Commission, Germany’s GDP this year will grow by 1.1 per cent (in the autumn forecast, the figure was 1.8%), France 1.3%, Italy 0.2%. The strongest economic growth the EU expects Malta (5.2%), in Ireland and Slovakia (4.1 percent).

Growth will recover in the second half of 2019 and 2020

The economies of all EU countries will continue to grow, which means the creation of new jobs and prosperity, said Vice-President of the European Commission Valdis Dombrovskis. However, he pointed to the growing uncertainty in international trade and problems in individual States, and the growing threat of unregulated British exit from the EU.

In turn, the EU Commissioner for Economics and financial Affairs Pierre Moscovici said that the slowdown in the European economy will continue after the peak in 2017. The economic foundations of the EU are solid, so you will still see a positive trend, in particular in the field of jobs, he added. “The growth should gradually recover in the second half of this year and 2020,” said Moscovici further.

In late January, the German government also revised its forecast for GDP growth in the country this year, reducing the rate from 1.8 to 1.0 percent. The Minister of economy and energy of Germany Peter Altmaier (Peter Altmaier) explained the measure as external factors, such as the danger of hard “Brekzita” and continuing trade conflicts. In this case, the German labor market continued a positive trend, the unemployment rate in 2019 for the first time will be “definitely below 5 percent.” A year earlier the figure was 5.2 percent.