Don’t miss the latest developments in business and finance.

Euro zone to grow fastest in decade in 2017, to slow slightly in 2018, 2019

Image
Reuters BRUSSELS
Last Updated : Nov 09 2017 | 5:57 PM IST

BRUSSELS (Reuters) - The euro zone economy will grow at its fastest pace in a decade this year, the European Commission forecast on Thursday sharply increasing its projections from earlier this year, but the expansion will slow somewhat next year and in 2019.

In its regular forecasts for the all European Union economies, the Commission said the economy of the 19 countries sharing the euro would grow 2.2 percent this year, up from 1.8 percent in 2016. In May the Commission forecast 2017 growth at 1.7 percent.

"The European economy has performed significantly better than expected this year, propelled by resilient private consumption, stronger growth around the world, and falling unemployment," the Commission said in a statement.

"Investment is also picking up amid favourable financing conditions and considerably brightened economic sentiment as uncertainty has faded," it said.

Growth in 2018 is to slow to 2.1 percent and to 1.9 percent in 2019, the Commission said.

(Reporting By Jan Strupczewski)

Also Read

First Published: Nov 09 2017 | 5:54 PM IST

Next Story