EU raised euro area’s GDP forecast
The European Union updated its economic outlook which has become a bit more optimistic.
The euro area’s GDP growth forecast for 2015 was raised from 1.1% to 1.3% and from 1.7% to 1.9% in 2016. Greek economy is expected to add 2.5% this year, down from a November estimate of 2.9%.
The euro zone’s unemployment forecast was slightly cut from 11.3% to 11.2%. However, the outlook for inflation was revised down from +0.5% to -0.1% in 2015 and from 1.5% to +1.3% in 2016.
According to the EU, uncertainty surrounding economic forecasts has increased. Downside risks have intensified, although there are several new positive factors.