European Commission revises up Euroarea GDP growth forecast for 2016, 2017

The European Commission released its Autumn 2016 Economic Forecast report today, which shows that the EC projects euro area economy to expand 1.5 percent next year. It also expects the economic growth in the EU to be 1.6 percent in 2017.  The EC noted hindrances to growth and softening of supportive factors.

According to Economic Commission, the economic growth in Europe is likely to continue at a moderate rate, as recent gains in the labor market and increasing private consumption are being offset by several hindrances to growth and the weakening of supportive factors.

It projects the euro area GDP to grow 1.7 percent this year, 1.5 percent next year and 1.7 percent in 2018. In its Spring forecast, the EC had projected the euro area to grow 1.6 percent in 2016 and 1.8 percent in 2017. This shows that there is a slight upward revision from the previous projections.

GDP growth in the EU as a whole is likely to follow a similar pattern and is projected to grow 1.8 percent this year, 1.6 percent next year and 1.8 percent in 2018. The 2016 forecast has been kept unchanged but the 2017 projection has been slightly revised upwards.