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July 12, 2018, 08:11 Brussels, July 12 (PL) The European Commission (EC) has reduced its forecasts for economic expansion for the European Union (EU) and the EU. 2.18% euro area In 2018, community leaders said in a statement today (19659002) that after five consecutive quarters of vigorous expansion, the economic impetus is growing. is moderate in the first half of 2018. stronger growth is expected for the second half of the year.
Some of the indicators that will promote economic growth in both regions will be improved labor market conditions, reduced household debt, high household confidence. Brussels said the forecast excludes further escalation of global trade tensions, while warning "They would negatively affect trade and investment, and reduce welfare in all countries involved."
The executive added to the volatility potential of the financial markets will be linked, inter alia, geopolitical risks and uncertainty in some member states over a possible escalation in oil prices
According to the vice -Chief President for the euro, Valdis Dombrovskis, the downward revision of gross domestic product growth shows that an unfavorable external environment, such as growing trade tensions with the United States can cool trust and affect economic expansion.
Meanwhile, the Commissioner for Economic and Financial Affairs, Pierre Moscovici, warned that a further escalation of protectionist measures posed an obvious risk to the economy. , and condemned that trade wars do not produce winners, only victims.
Among the largest economies in the euro area with the largest increases in GDP is in Spain (2.8 in 2018 and 2.4 in 2019), Germany (1.9 in both periods), France (1.7 in 2018 and 2019) and in Italy (1.3 in 2018 and 1.1 in 2019.)
Meanwhile, for the United Kingdom, a country that faces the situation in the UK. Uncertainty due to negotiations on Brexit, the EC has estimated an economic expansion of 1.3 in 2018 and 1, 2 in 2019.
Regarding inflation, the European executive provides for a up 1.9% for the EU due to rising oil prices and 1.7% for countries that share the euro, an increase of 0.2 percentage point in both areas compared to previous forecasts.
mem / tdd
