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Home BUSINESSEuropean growth becomes more broader based: EC
Tue, 06 May, 2014 12:00:30 AM
FTimes- Xinhua Report, May 06
Leading indicators showed that the economic outlook is improving and recovery is broadening in the European Union (EU), according to European Commission (EC) forecasts released on Monday.
Real GDP growth is modified to advance 1.6 percent and 1.2 percent respectively in the 28-member EU and the 18-member eurozone in 2014, before gaining some further speed to 2.0 percent and 1.7 percent respectively in 2015, said the EC's Spring 2014 European Economic Forecast.
In contrast to the sharp but short-lived upturn in 2010, the current recovery in the EU and the euro area is more balanced regionally, growth turned positive in a large majority of member states over the course of last year.
Ireland is seeing increasingly robust employment growth. The economic recovery is firming in Spain and Portugal. In Greece, a moderate rebound is expected to begin this year.
Economic growth is expected to sustain in Germany while the recovery is slowly gathering pace in France and Italy. In Britain, growth is becoming firmly established.
"The recovery has now taken hold. Deficits have declined, investment is rebounding and, importantly, the employment situation has started improving. Continued reform efforts by Member States and the EU itself are paying off," said Siim Kallas, Vice-President of the EC.
Meanwhile, inflation is projected to remain at a low level for a prolonged period in both zones.
EC estimated customer prices just to increase 0.8 percent in the eurozone and 1.2 percent in the EU in 2014, a drop from the 1.2 percent and 1.0 percent respectively for the two regions in a February estimate.
In 2015 inflation is expected to remain low at 1.2 percent and 1.5 percent in the eurozone and the EU respectively.
However, downside risk to the growth outlook still exists, such as a renewed loss of confidence from a stalling of reforms, and increased uncertainty about the external environment, the EC warned.
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