European Union cuts eurozone growth forecast, inflation to slow

EU slashes its forecasts for eurozone economic growth

Clouds on the horizon are also getting darker, the commission said. But the risks are clearly on the downside, explained the Commissioner for Economic Affairs, Pierre Moscovici.

The economic slowdown forecast by the commission is worse than that seen by the ECB in its latest projections released in December last year, when the bank expected the eurozone to grow by 1.7 percent this year.

Italy, the third largest economy in the euro zone, is expected to post the slowest growth rate in the whole European Union with a mere 0.2 percent expansion this year.

For next year, the output is expected to pick up, although slightly less than initially expected, to reach 1.6% for the eurozone and 1.8% for the European Union as a whole. 2019 is expected to be the seventh straight year of economic growth.

Europe "does seem to be more affected than other areas by the slowdown in global trade", Moscovici explained. Trump has said he plans to raise tariffs, or import taxes, on US$200-billion worth of Chinese imports on March 2 if no deal is reached.

The euro area was particularly impacted by the trade tensions triggered by the US-China dispute "given the geographical orientation of its external trade and its product specialisation" the forecast document reads.

On that front, Commission forecasters also warned that the domestic drivers of the expansion in the euro area have "softened". The ECB said incoming data have "continued to be weaker than expected on account of softer external demand and some country and sector-specific factors".

Fatal airbag recall = 1.7 m
The airbags, made by Japanese company Takata, feature an inflator that uses explosives to quickly pump up the bag during a crash. Between Subaru , Tesla , B-M-W, Volkswagen , Daimler vans , Mercedes , and Ferrari it's for more than 1.7 million vehicles.

For the European Union, Brexit remains a source of uncertainty, the commission said.

The improving situation of the labour market across Europe, the slightly expansionary fiscal policy and the low financing costs are still fueling the expansion even if at a slower pace.

In its forecasts, the commission sees the 19-nation eurozone economy expanding 1.3 per cent this year, down from 1.9 per cent projected in November.

"Yellow Vest" protesters stage a demonstration in Bordeaux, France, on the 12th consecutive Saturday of rallies last weekend.

Germany, Italy and the Netherlands all saw sizeable downgrades for their growth outlook. Next year, the bloc is forecast to expand by 1.8 per cent. It blamed uncertainty over government policies and higher borrowing costs for pushing Italy into recession in the second half of a year ago. A raft of risks is stalking the European and global economies, including China's slowdown, a trade dispute between the US and China that has created new import taxes, and the chance that Britain could leave the European Union in March in a chaotic fashion without approving a transition agreement.

The latest growth forecast may force Italy to again review its spending plans for 2019 in order to satisfy Brussels and assuage investors. It dropped by 0.4% month/month - better than the previous month's revised fall of 1.3% but confounding expectations of a 0.8% increase.



Latest news

A private Indian hospital releases information about QuadrigaCX CEO's death
Robertson, Cotten's widow, has reportedly hired a hacker to try to access the embattled exchange's funds in his laptop. A cryptocurrency researcher has revealed that he found no evidence that QuadrigaCX even had a cold wallet.

Francisco Lindor Out 7 To 9 Weeks With Right Calf Strain
He signed a one-year, $10.5 million deal with Cleveland in January, and will be arbitration eligible in both 2020 and 2021. In a statement the Indians said Lindor suffered the injury working out over the weekend in Orlando, his offseason home.

Nintendo: 'The 3DS market has contracted faster than we anticipated'
Nintendo has yet to have a traditional Direct in 2019, disappointing some after announcing an indie-focused presentation last month which revealed SteamWorld Quest.

Samsung Galaxy M30 to come with triple rear cameras, 5000mAh battery
Like the M20, the Galaxy M20 also supports face unlock and adds in a fingerprint sensor for additional security. Like handset will be powered by Exynos 7904 processor with 6GB of RAM and 128 GB of storage.

Update on Matches Advertised for the WWE Fastlane PPV
Despite Lynch being "medically suspended" on WWE TV this week, that match is still confirmed for Wrestlemania. WWE Superstar Seth Rollins is now said to be dealing with a back injury as we reported last week here on eWn.

Global Virtual Reality Market Opportunities and Growth Analysis
Other key feature included in this report is the analysis of the revenue forecasts of all the important regions and applications. For the growth estimation of the Augmented Reality (AR) Market for the predicted duration, it uses various methodological tools.

Ramaphosa announced as African Union chair for 2020
An African diplomat told AFP that Egypt - along with fellow heavyweights South Africa and Nigeria - does not want a powerful AU. As usual, the continent's multiple security crises will be high on the VIPs' agenda.

Thomas Cook profit losses flying high at £60m
That coincides with the company announcing a " strategic review " of the profitable and growing group airline business. Analysts said there might not be many bidders to take the whole airline in one go, given turmoil in the industry.

May to promise more Brexit debates in push for more negotiating time
The former Labour leader told Sky News' Sophy Ridge On Sunday: "No one could responsibly propose (a no-deal Brexit). So the uncertainty is not something that will happen in early April, it is something that is with us".

Death Toll From Dam Disaster in Brazil Climbs to 157 People
Fire department spokesman Pedro Aihara said that the rescue operation is still going on despite rain, with 50 personnel and 16 excavators in the search for survivors.

Alia Bhatt reacts to Kangana Ranaut calling her "Karan Johar’s puppet"
However, this did not go down well with the Queen star, who reportedly told the budding actor to "grow a spine". She replied, "How will it benefit me?" I don't think I have done anything intentionally to upset her.

Year-old girl battling terminal cancer sworn in as honorary police officer
A 6-year-old girl who's battling cancer has had her dream come true of being sworn in as a Texas police officer. Abigail said she wanted to become a police officer so she could fight the "bad guys": the cancer in her body.

Montreal unemployment rate drops below Toronto's (again) in January
The statistics show that Camrose-Drumheller has the highest unemployment rate of all the economic regions in the province. Due to this, the country nearly needs big monthly job numbers just to keep the unemployment rate steady, Porter added.

Suspected DUI driver dances throughout sobriety test in Florida
At one point in the tests, Larson was instructed to walk heel-to-toe across a piece of tape stretched out on the ground. He was later arrested on a charged of DUI and released from jail on his own recognizance, records show.

Colombian vet who smuggled heroin to US in puppies sent to prison
Last May, he was extradited to the United States, where he pleaded guilty to the charges. Three of them died after contracting a virus following the surgeries.

Other news