U.S. protectionism could undermine modest growth forecast for eurozone, says EU Commission
Associated PressFRANKFURT, Germany — Europe’s economy has left stagnation behind but is headed for only modest growth in coming months as consumers regain some of the purchasing power they lost to inflation, the European Union’s executive commission said Friday. AP AUDIO: U.S. protectionism could undermine modest growth forecast for eurozone, says EU Commission AP correspondent Charles de Ledesma reports Europe and UK economies are not re-bounding quick enough, experts say. “After the stagnation in ’23, the European economy is growing again and is set to accelerate over the next two years, however growth remains modest and exposed to important downside risks,” said Gentiloni. The commission said that “the restraint to consumption appears to be loosening.” It added: “As the purchasing power of wages gradually recovers and interest rates decline, consumption is set to expand further.” Inflation is forecast to come in at 2.1% next year, just above the European Central Bank’s target of 2% and a substantial relief from the peak of 10.6% recorded in October 2022.