EU Edges Up Eurozone Growth Outlook For 2016, Trims 2017

BRUSSELS, Nov 9, (APP - UrduPoint / Pakistan Point News - 09th Nov, 2016 ) - The European Union on Wednesday raised its eurozone growth forecast for this year but trimmed it for next year, warning that the economy faced new challenges due to Brexit and increased volatility.

Pointing to increased global risks for the 19-country single Currency area as shown by the shock victory of Donald Trump in the United States, the EU said economic growth this year would reach a modest 1.7 percent.

The Commission also said that eurozone growth would slow to 1.6 percent growth next year, as the negative effects of Britain's looming divorce from the EU began to be felt more deeply.

"In these volatile and uncertain times, no effort must be spared to safeguard and strengthen this recovery -- and ensure that all sections of society feel its benefits," said EU Economics Affairs Commissioner Pierre Moscovici.

Inflation, long stuck near negative territory, would accelerate sharply, the commission said, as rising oil prices began to lift consumer prices. The commission said inflation in the eurozone would hit 1.4 percent in 2017, up from an expected 0.3 percent for 2016.