EU hails growth but warns of uncertainty in UK over Brexit

The EU said economic growth among the countries using the euro would reach 1.7% this year and 1.8% in 2018 but warned of uncertainty in the UK
The EU said economic growth among the countries using the euro would reach 1.7% this year and 1.8% in 2018 but warned of uncertainty in the UK
Author

12 May, 2017

EU officials said the eurozone's recovery from the global financial crisis of 2007-08 faced threats, such as negotiations over Britain's exit from the EU, China's economic adjustment and potential protectionist measures from U.S. President Donald Trump. "China's economic adjustment, the health of the banking sector in Europe and the upcoming negotiations with the United Kingdom on the country's exit from the European Union are also considered as possible downside risks in the forecast".

The European Commission on Thursday raised its forecast for Polish economic growth from 3.2 percent to 3.5 percent for 2017, and from 3.1 percent to 3.2 percent in 2018. The commission cut its inflation projections and sees consumer-price growth of just 1.3 percent in 2018, well below the ECB's goal.

The forecasts, published three times a year, confirm all euro zone countries will grow this year and next, with Germany, the bloc's largest economy, accelerating to 1.9 percent in 2018, and Spain and Portugal expanding more than previously expected.

"It is good news too that the high uncertainty that has characterized the past twelve months may be starting to ease".

"Europe is entering its fifth consecutive year of growth", EU Economics Commissioner Pierre Moscovici said. The EC's "spring predicitions" also include an increase in GDP growth, to 2.7%, which is even higher than the government's forecast.

British PM May vows energy price cap if re-elected
The Conservative leader vowed to place a cap on standard variable tariffs to remove the "injustice" of soaring energy costs. The proposed Tory cap would be introduced on standard variable tariffs, which around 70% of households are on.

Ryan Seacrest to turn down American Idol?
I think it's fantastic that it's going to get a chance for a bunch of young people to possibly be stars. I said at the end of the series, 'Goodbye for now, ' hoping somewhere it would come back.

Why Nigerien President Issoufou's visit to Buhari was postponed - Adesina
Earlier this week, a group of prominent Nigerians has called on Mr Buhari to take medical leave as concerns about his health grow. We always said Mr President will stick to his doctors' advice so that he can recover much more quickly.

Looking at what could drive further growth, the Commission also mentioned the launch of the Malta Development Bank, saying it could provide an additional boost to investment.

The Commission said that improving labour market conditions are expected to support domestic demand over the next two years.

While noting that the pound can not expect any immediate support from higher interest rates, analysts also detected a slightly more aggressive tone on future rate hikes from the central bank. The first: Political uncertainty.

"The decision to increase the minimum wage may support private consumption further, although the impact on GDP growth could be offset by higher costs for employers", it added when analysing the possible risks.


More news


  • Boxing in fantastic shape after Joshua triumph - Hopkins

    Boxing in fantastic shape after Joshua triumph - Hopkins

    And Klitschko, you've got to give credit to him. "I like that he's patient, too, he's like Frank Bruno but on steroids (sic)". Boxing has been struggling to find a new heavyweight champion who can captivate a worldwide audience for years.
    Now Barcelona's Neymar has to stand trial for fraud

    Now Barcelona's Neymar has to stand trial for fraud

    The club also admitted that it paid nearly 100 million euros for Neymar , not the 57.1 million euros it originally claimed. His arrival from Santos has been a huge success for the Spanish champions on the pitch but a judicial nightmare off it.
    May is for mental health awareness

    May is for mental health awareness

    "People who struggle can get better and many recover completely". "Mental illness makes people violent". In 1951, this week was set aside by CMHA to raise awareness regarding mental health issues.
  • Trump signs executive order to promote religious liberty

    The group wants the court to declare that it gives preferential treatment to churches and halt the IRS from implementing it. The American Civil Liberties Union is not that anxious about President Trump's new "religious liberty" executive order.
    5 things we learned from the Premier League this weekend

    5 things we learned from the Premier League this weekend

    You think I enjoy a big club like Arsenal not winning big trophies? "We had just one blip but overall we look a bit more stable". Mourinho made eight changes for the match ahead of United's Europa League semi-final second leg against Celta Vigo on Thursday.
    AAP govt removes Kapil Mishra as minister, inducts 2 new faces

    AAP govt removes Kapil Mishra as minister, inducts 2 new faces

    When Kapil Mishra posted a letter on Twitter addressed to Delhi ACB Chief M.K. He joined the Aam Aadmi Party (AAP) in mid 2014. "Nobody will believe it".
  • 'Erdogan is an enemy of Israel': Knesset speaker

    Relations between Turkey and Israel have been strained following a 2010 Israeli commando raid on a Turkish boat containing pro-Palestinian activists.
    40000 soldiers, police for ASEAN summit in Philippines

    40000 soldiers, police for ASEAN summit in Philippines

    Manalo said many schemes involving China and the Philippines were "in the pipeline", but would take a long time to complete. He said the tribunal's decision "is simply (based) on entitlement, not even territory".
    Juventus 1 Torino 1: Last-gasp Higuain strike cancels out Ljajic stunner

    Juventus 1 Torino 1: Last-gasp Higuain strike cancels out Ljajic stunner

    Cue "expensive donkey" Gonzalo Higuain popping up and beating Joe Hart right at the death. We have to win against a Monaco team with great talent and quality".
  • Pizza Hut Israel Trolls Marwan Barghouti

    Pizza Hut Israel Trolls Marwan Barghouti

    Critics have accused Israel of using food as a "weapon" against Barghouti , but nothing indicates any coercion. Hundreds of Palestinian prisoners in Israeli jails are now on hunger strike over their conditions.
    May is National Mental Health Awareness Month

    May is National Mental Health Awareness Month

    If you or a loved one are in need of emergency help, a crisis line volunteer can be reached at any time at 937-393-9904. By acting early, we can prevent many of these illnesses from progressing, or even occurring in the first place.
    India's cricket team to participate in Champions Trophy

    India's cricket team to participate in Champions Trophy

    With the new revenue model getting the nod, BCCI will now have to do with what they have in the eight-year cycle. India has been at loggerheads with the ICC in recent weeks over the revenue and governance models.