Arab Today, arab today eu cuts 2016 eurozone growth forecast on china risks
Last Updated : GMT 17:18:14
Arab Today, arab today
Arab Today, arab today

EU cuts 2016 eurozone growth forecast on China risks

Arab Today, arab today

Arab Today, arab today EU cuts 2016 eurozone growth forecast on China risks

China's slowing economy is depressing EU growth
Brussels - AFP

The EU on Thursday cut its eurozone growth forecasts for this year, warning that the slowdown in China and Europe's biggest migrant crisis since World War II posed real risks.

For the 19-nation single currency area, still sluggishly recovering from the financial crisis and the near exit of Greece last year, the European Commission reduced its 2016 growth estimate to 1.7 percent from 1.8 percent.

"Risks to the economy are becoming more pronounced and new challenges are surfacing -- slower growth in China and other emerging market economies, weak global trade as well as geopolitical and policy-related uncertainty," the Commission said in its winter economic forecast.

It also warned that any suspension of the Schengen passport-free area as Europe struggles to curb the huge flow of refugees and migrants would cause further disruption.

The migration crisis, which saw more than one million people brave risky sea crossings to reach the continent last year, posed "major political challenges" which could easily undercut growth if not properly handled, it said.

"A more widespread suspension of Schengen and measures that endanger the achievements of the internal market could potentially have a disruptive impact on economic growth," it said.

Brussels has warned of a possible two-year reintroduction of border controls in the 26-country Schengen area -- effectively suspending free movement across the zone -- over Greece's failure to secure its borders amid the migration crisis.

Positives such as lower oil prices, cheap money and a weak euro which boosts exports may not be enough to keep the economy on track, the Commission said.
Falling prices may even be a hindrance since buyers put off purchases if they think they can get them cheaper later, and the forecasts put the eurozone perilously close to this deflation trap. 

The Commission said inflation was unchanged in 2015, coming in below even its forecast for a marginal gain of 0.1 percent.

Worse still, it slashed its inflation estimate for this year to 0.5 percent from 1.0 percent, before it picks up to 1.5 percent in 2017.

The European Central Bank's inflation target is around 2.0 percent, highlighting the scale of the problem. 

The eurozone has recovered painfully slowly from the 2007-08 global financial crash which brought the single currency area to its knees, with the ECB forced to launch a more than one-trillion-euro stimulus programme to bolster growth.

In 2015, the eurozone grew 1.6 percent, so the 1.7 percent forecast for this year represents marginal progress at best, although the Commission expects it to pick up to 1.9 percent next year, unchanged from its previous forecast.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today eu cuts 2016 eurozone growth forecast on china risks Arab Today, arab today eu cuts 2016 eurozone growth forecast on china risks

 



Arab Today, arab today
Arab Today, arab today Jordan airline suggests flyers 'talk'

GMT 11:59 2017 Friday ,24 March

Jordan airline suggests flyers 'talk'
Arab Today, arab today 5 Crafty Must-Have Limited-Budget Ideas

GMT 17:03 2017 Saturday ,25 March

5 Crafty Must-Have Limited-Budget Ideas
Arab Today, arab today Dozens dead in US-led Syria strikes

GMT 08:35 2017 Thursday ,23 March

Dozens dead in US-led Syria strikes
Arab Today, arab today Former head of Egypt’s syndicate submits appeal

GMT 20:11 2017 Saturday ,25 March

Former head of Egypt’s syndicate submits appeal
View News in Arabic - Business: اقتصاد دولي
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Yemen children dream of school

GMT 07:25 2017 Friday ,24 March

Yemen children dream of school
Arab Today, arab today MP submits a petition to dismiss university head

GMT 06:21 2017 Friday ,24 March

MP submits a petition to dismiss university head
Arab Today, arab today Salvage of South Korea's Sewol ferry

GMT 04:51 2017 Friday ,24 March

Salvage of South Korea's Sewol ferry
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Audi RS 5 Coupe acquires new design

GMT 13:22 2017 Thursday ,23 March

Audi RS 5 Coupe acquires new design
Arab Today, arab today Renault Trezor wins design award

GMT 11:56 2017 Tuesday ,21 March

Renault Trezor wins design award
Arab Today, arab today Actress Mervat Amin reveals her role in new series
Arab Today, arab today 2017 already marked

GMT 15:25 2017 Tuesday ,21 March

2017 already marked

GMT 06:04 2017 Thursday ,23 March

Haifa Wahby bets on her new drama show

GMT 22:00 2017 Thursday ,23 March

Number of unwedded girls amounts to 2.5m

GMT 18:57 2017 Tuesday ,21 March

Accessories designer reveals her new collection

GMT 10:34 2017 Tuesday ,21 March

Mexico threatens to ditch US corn imports

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures

GMT 20:03 2017 Saturday ,25 March

Health expert warns from dust sensitivity

GMT 07:36 2017 Wednesday ,22 March

US, Britain ban laptops on flights

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 19:27 2017 Saturday ,11 March

Boualsof launches "Priestess Kahina" collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday