BRUSSELS – The European Commission revised on Thursday its growth forecast for the European Union and the eurozone in 2018 by 0.2 percent to 2.1 percent.
Economic affairs commissioner Pierre Moscovici said commercial tensions were a great risk to the European economy and insisted that, though the impact had so far been limited, it could escalate.
“Growth in Europe is set to remain resilient – in spite of a slight downward revision compared to the spring – as monetary policies stay accommodative and unemployment continues to fall,” he said.
Spain is the only major eurozone economy expected to remain above the average, though its growth forecast was reduced by 0.1 percent to 2.8 percent.
In 2019, that forecast is to drop to 2.4 percent, said Moscovici.
“The main drivers of growth are private consumption and construction investments,” said the commissioner.
Meanwhile, France’s growth forecast has been adjusted to 1.7 percent, down from 2 percent, while Germany has gone down 0.4 percent to 1.9 percent and Italy has seen a 0.2-percent drop to 1.3 percent.