European Commission predicts ‘turning point’ in Europe
The European Commission has said the European economy has reached a “turning point”, but the eurozone will grow less quickly than previously expected.
The Commission said there were “signs of hope” that had started to turn into “tangible positive outcomes”.
But in the eurozone – the 18 nations that use the euro – it predicted growth of 1.1% next year.
This is the second downward revision of 2014 eurozone growth this year, after it was cut from 1.4% to 1.2% in May.
The Commission forecast that the eurozone would grow 1.7% in 2015. In the EU as a whole, it expects 1.4% growth next year and 1.9% in 2015.
It said overall EU growth would be flat this year, up from its May forecast, but unemployment would stay at 11.1%.
Jonathan Loynes, chief European economist at Capital Economics, said the subdued forecasts reflected the “general sluggishness” of the eurozone economy.
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