Eurozone GDP growth forecast worsened to 1.3% in 2019

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The European Commission (EC) has downgraded the forecast for eurozone GDP growth from 1.9% to 1.3%. The basis of the decrease is the uncertainty of the Brexit deal and the slowdown in the growth rate of the Chinese economy. In 2020, eurozone GDP is expected to grow by 1.6%, rather than 1.7%. Last year, the European economy grew by 1.9% after growing by 2.4% in 2017. The target inflation rate set by the ECB is “just below 2%.” In 2019, prices in the eurozone will rise by 1.4%, rather than 1.8%, as previously assumed. Disregarding the UK, the 27 remaining EU countries will raise the economy by 1.5% this year against a 2.1% increase. The rise in GDP will continue in 2020 at around 1.8%. The maximum decrease in the forecast was recorded by Italy - the country's GDP will grow by 0.2%. Initially, experts had predicted a rise of 1.2%. Germany's GDP will rise by 1.1% after rising 1.5% a year earlier. The European Commission also lowered forecasts for France, Spain and the Netherlands. The Greek economy, by contrast, will grow by 2.5% instead of 2.3% in 2019. Brexit, the US-Chinese trade conflict and weak global markets have a negative impact on eurozone GDP this year.

 

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