European Commission cuts 2018 Eurozone growth forecast to 2.1% from 2.3%

The European Commission releases its latest economic forecasts

• 2019 growth forecast unchanged at 2.0%
• Eurozone inflation seen at 1.7% in 2018 (previously 1.5%)
• Eurozone inflation seen at 1.7% in 2019 (previously 1.6%)

• Sees UK growth at 1.3% in 2018 (previously 1.5%)
• Sees UK growth at 1.2% in 2019 (unchanged)
• Sees Germany growth at 1.9% in 2018 (previously 2.3%)
• Sees Germany growth at 1.7% in 2019 (previously 2.1%)
• Sees France growth at 1.7% in 2018 (previously 2.0%)
• Sees France growth at 1.7% in 2019 (previously 1.8%)

Not much of a surprise given the recent downgrade in forecasts for Germany in particular. Similar to the ECB, they view that inflation is expected to pick up during the year and also during next year - moving closer towards 2%.