Arab Today, arab today eu cuts 2016 eurozone growth forecast on china risks
Last Updated : GMT 20:52:28
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.

arabstoday
arabstoday

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

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 Designer Rania Adel reveals her new collection

GMT 17:59 2017 Monday ,12 June

Designer Rania Adel reveals her new collection
Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today Mai Al-Jeddawi presents décor ideas for Ramadan
View News in Arabic - Business: اقتصاد دولي
Arab Today, arab today
Arab Today, arab today

GMT 09:49 2017 Tuesday ,02 May

Girl barred from Malaysia chess competition

GMT 08:48 2017 Saturday ,06 May

Climate science: Bad news gets worse

GMT 16:25 2017 Sunday ,04 June

“Suhoor” is basic meal for fasting

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 23:13 2017 Sunday ,18 June

New ransomware virus attacking mobiles in Oman
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