MNI: EU Commission '18 GDP, Infla Forecast Eurozone Unchanged

--Spreing Economic Forecasts In Line With Feb Survey

     LONDON (MNI) - The European Commission has left its 2018 and 2019 forecasts

for euro area growth and inflation unchanged in the latest economic forecasts.

     In its Spring economic forecasts, the Commission said Eurozone growth will

likely be 2.3% this year, in line with the 2.1% forecast in February. For 2019,

euro area growth should come in at 2.0%, the EC said, also unchanged from the

October forecast.

     Euro area inflation is expected to average 1.5% this year, matching the

October forecast, then rise to 1.6% in 2019, again as forecast in February.

     The Commission said that the European economy has performed significantly

better than expected this year, propelled by resilient private consumption,

stronger growth around the world, and falling unemployment. 

     "Growth rates for the EU and the euro area beat expectations in 2017 to

reach a 10-year high at 2.4%. Growth is set to remain strong in 2018 and ease

only slightly in 2019, with growth of 2.3% and 2.0% respectively in both the EU

and the euro area," the statement said.

     "Europe continues to enjoy robust growth, which has helped drive

unemployment to a ten-year low. Investment is rising and public finances are

improving, with the deficit in the euro area set to drop to just 0.7% of GDP

this year," Economic and Financial Affairs chief Pierre Moscovici said in a

statement 

     "The biggest risk to this rosy outlook is protectionism, which must not

become the new normal: that would only hurt those of our citizens we most need

to protect," he added.  

     The EC upped the UK 2018 GDP outlook to 1.5% from February's 1.4%, with

2019 forecast upped to 1.2% from 1.1%. The EC said assumptions made in making UK

forecasts were made on a purely technical assumption of status quo, which had no

bearing on the current Article 50 process.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

[TOPICS: M$B$$$,M$E$$$,M$X$$$,MI$$$$,MT$$$$]