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5 May 2015
European commission lifts Eurozone growth forecast
FXStreet (Mumbai) - The European Commission, in its latest report published on Tuesday, forecasts gross domestic product in the 19-nation Eurozone should grow at 1.5%, up from their previous forecast in February of 1.3%.
The commission raised its forecast for Germany to 1.9% from 1.5%. German economic growth would be mainly driven by domestic consumption buoyed by the strong job market, immigration and low interest rates.
Meanwhile, Greece’s forecast was slashed to 0.5% from 2.5%. Uncertainty in Greece “is taking a heavy toll on investment, which is also suffering from limited credit supply from the financial sector and a build-up of arrears from the public sector,” the commission said.
The commission raised its forecast for Germany to 1.9% from 1.5%. German economic growth would be mainly driven by domestic consumption buoyed by the strong job market, immigration and low interest rates.
Meanwhile, Greece’s forecast was slashed to 0.5% from 2.5%. Uncertainty in Greece “is taking a heavy toll on investment, which is also suffering from limited credit supply from the financial sector and a build-up of arrears from the public sector,” the commission said.