EU cuts euro zone growth forecast, inflation to slow

Frankfurt

Output was down 0.4 percent on November - in huge contrast to a forecast from Reuters for an increase of 0.7 percent.

The European Commission has cut its forecast for Eurozone GDP growth this year to 1.3% from 1.9% and for next year to 1.6% from 1.7%. Next year, the bloc is forecast to expand by 1.8 per cent. The EU's growth as a whole was revised to 1.5 percent from 1.9 percent.

"We need to watch certain situations and the situation in Italy as far as growth is concerned is much worse with 0.2 percent, which is quite significant", EU Economic Affairs Commissioner Pierre Moscovici said in an interview with Bloomberg Television from Brussels.

European Union (EU) officials have slashed their growth forecast for the 19 countries that use the euro, saying even the lower estimate was vulnerable to "large uncertainty" from slowing growth in China and weakening global trade.

But it also mentioned internal factors as causes for the worsened outlook, notably slower vehicle production in Germany, social tensions in France and "strong uncertainty on budget policies in Italy", EU economics commissioner Pierre Moscovici told a news conference.

The gloomier forecast reflects more pronounced weakness in the region, which stumbled at the end of 2018 as political instability continued to rock Italy, violent protests in France depressed output, and Germany's auto industry struggled to rebound from changes in regulation, according to Bloomberg.

Indians Lindor has Strained Calf
Edwin Encarnacion , Yonder Alonso, Yan Gomes and Yandy Diaz were among the hitters the Indians traded this winter. He told James Quinlan, Indians' head athletic trainer, Monday and he was examined on Wednesday at the Clinic.

Classic Baldur's Gate video games are coming to Xbox One OnMSFT.com
Baldur's Gate is a legendary CRPG and arguably the progenitor of titles such as Dragon Age and Mass Effect. All games will be enhanced for console platforms and available in both physical and digital form.

Opening this image file grants hackers access to your Android phone
Just by opening the evil PNG file on a chat app or email, the malware can start running on the device with high-level privileges. The flaw found in Android specifically deals with three vulnerabilities.

In Germany, the bloc's largest economy, growth is expected to slow to 1.1 per cent this year from 1.5 per cent in 2018. "However, there have also been a number of domestic factors at play", it said, pointing to social tensions and budget-policy uncertainty in some countries, as well as weakness in the vehicle industry.

Speaking to Bloomberg, Ms Crowl said: "It's a little bit hard to be short but that's not without saying we can still see some pound weakness as we got into these negotiations, particularly against the U.S. dollar". "In the USA, the risk of an abrupt fiscal tightening appears to have increased, especially for 2020", according to the report.

It added: "Overall, the risks surrounding the Euro area growth outlook have moved to the downside on account of the persistence of uncertainties related to geopolitical factors and the threat of protectionism, vulnerabilities in emerging markets and financial market volatility".

The Commission highlighted that despite the downward revision and the increasing risks, "the fundamentals of the European economy remain sound".

Given the uncertainty around its exit from the European Union, the Commission's forecast is based on the status quo in terms of the trading relations between the United Kingdom and the rest of the European Union member states, Moscovici explained. European Central Bank policy makers already walked a fine line in December by downgrading economic forecasts at the same time as ending net asset purchases that have helped buoy euro-area demand. The ECB aims to get inflation to just below 2 percent over the medium term.

Related News:



Most liked

Foot Locker Just Invested $100 Million in GOAT
Foot Locker, Inc ., through its subsidiaries, operates as an athletic shoes and apparel retailer.The firm is worth $6.39 billion. Finally, Palo Capital Inc. acquired a new stake in Foot Locker during the third quarter worth approximately $623,000.

(4:35 PM) Bankruptcy Judge Gives Sears Another Chance
Judge Robert Drain approved the sale after a hearing spanning several days in a White Plains, N.Y., federal bankruptcy court. Schrock also urged Drain to consider the benefit of saving 45,000 Sears jobs. "We have not come to terms with ESL".

Six automakers add 1.7 million cars to Takata recall
To find out if your vehicle is being recalled, go to the National Highway Transportation Safety Administration website . As of December, automakers have recalled 50.36 million inflators and replaced 27.2 million of them.

Thomas Cook launches review of airline division
Today, Thursday morning, Thomas Cook Group PLC (LON: TCG ) stock Hold was reconfirmed by Shore Capital in a research report. This has involved a continuous review of our cost structure in order to stay competitive in a highly fragmented market.

Coca-Cola launches Orange Vanilla Coke
It's meant as a complementary beverage to boost sales (and claim more shelf space from rival Pepsi). I'm still not drinking this Orange Vanilla nonsense, though.

Rise above nepotism: Kangana Ranaut attacks Alia Bhatt for not supporting Manikarnika
Kangana Ranaut, who is known to never mince her words, recently spoke about how the industry and the stars have alienated her. However, now she got support from Anupam Kher . "Hope she understands the true meaning of success and her responsibilities".

Year-old girl fighting cancer fulfills her dream of becoming police officer
Abigail thought up a good way to combat what she calls "the bad guys" in her body that are making her sick. The chief couldn't hold back his tears while swearing in the terminally ill girl.

Suspected DUI driver dances throughout sobriety test in Florida
Larson later spoke with Fox 13 and said he would not call what he in the video dancing and would not comment on the arrest. At one point in the tests, Larson was instructed to walk heel-to-toe across a piece of tape stretched out on the ground.

Trump's counselor says woman assaulted her at restaurant
Being that Conway believes in "alternative facts", we'll wait until a court decides if she is telling the truth. Her lawyer denies that she touched Conway, saying that she was merely "exercising her First Amendment rights".

Fire service to remain at Ocado's damaged site for 'next few days'
She added it was a "strong possibility" that people who work within the exclusion zone would not have access on Thursday morning. And it said it had comprehensive insurance for the property, stock and equipment on site, and for business interruption losses.

‘Child’s Play’ First Trailer: Chucky Is Back, and He’s Terrorizing Aubrey Plaza
The original Child's Play arrived back in 1988, starring a doll named Chucky who was possessed by a serial killer. The trailer for the 1989 remake has just dropped and it's completely terrorising.

Israel arrests Palestinian over killing of Israeli woman
The enclave's health ministry says more than 220 Palestinians have been killed by Israeli troops at the protests. Footage of the teen lying on his back the moment after a bullet struck him in the neck spread on social media.

Celtics guard leaves game vs. Clippers with knee sprain
But he told the media "it's not fun" after the Celtics blew a 28-point lead in a loss against the Clippers. Brad Stevens said that Irving's knee appeared to "buckle".

Ricky Ponting joins Australia coaching staff ahead of World Cup
Saker said he had enjoyed "working closely with a great group of fast bowlers" and would look forward to a new coaching role. Australia's regular batting coach Graeme Hick will focus on preparations for the following Ashes Test series in England.

Chris Ashton and Courtney Lawes start for England against France
How can I watch it? Having returned to worldwide rugby during the autumn internationals last November, he scored against the All Blacks before coming on last weekend against Ireland .