The commission confirmed its prediction that economic growth in the euro zone would slow this year to 1.2% from 1.9% in 2018. As a result, the forecast for euro area GDP growth in 2019 remains unchanged at 1.2 percent, while the forecast for 2020 has been lowered slightly to 1.4 percent following the more moderate pace expected in the rest of this year (spring forecast: 1.5 percent).
The forecast for euro area GDP growth in 2019 remains unchanged at 1.2 percent, while that for 2020 has been lowered slightly to 1.4 percent.
Valdis Dombrovskis, vice president for the euro and social dialogue, said: "All EU economies are still set to grow this year and next, even if the robust growth in Central and Eastern Europe contrasts with the slowdown in Germany and Italy. Overall, inflation is forecast to remain subdued at 0.9% 2019 and 1% in 2020".More news: Amazon Extends 2019 Prime Day, But Is It Enough to Satisfy Customers?
Inflation in the euro area is now forecast to average 1.3 percent in both 2019 and 2020 (spring forecast: 1.4 percent in 2019 and 2020), while in the European Union it is forecast to average 1.5 percent in 2019 and 1.6 percent in 2020 (spring forecast: 1.6 percent in 2019 and 1.7 percent in 2020).
EU Commission sees uncertainty over USA trade policy as a major risk for the European economy.
However, a significant acceleration in growth is expected by the European Commission for Germany, as the country's growth is expected to increase to 1.4% in 2020, falling just below the expected eurozone average of 2020 of 1.6%.More news: Father Ted star Brendan Grace dead at 68 after cancer battle
"This could lead to rapid tightening of global financial conditions", he added. In addition, the growth forecast for next year is partly due to a higher number of working days.
Malta's main sources of income, such as tourism, electronics, information technology services, iGaming and financial services, have thrived in recent years, and they are expected to continue doing so, with Malta's economy having a solid base for future success. Inflation in the Eurozone is now predicted to be 1.3% this year and the next, and 1.5% and 1.6% in the wider bloc.
The commission maintained unchanged its forecasts for Britain, whose economy is foreseen growing 1.3% this year and next. However, the projection does not take into account possible trade disruptions caused by a no-deal Brexit.More news: Momo Challenge becomes basis of horror movie from 'It' producer