European Commission predicts a slow down of Croatian economic growth

European Commission predicts a slow down of Croatian economic growth

European Commission predicts a slow down of Croatian economic growth

Pierre Moscovici, the European Commissioner for Economic and Financial Affairs gives a press conference on Spring 2019 Economic Forecast at the European Commission in Brussels, Tuesday.

"More Europeans are now in work than ever and employment growth is expected to continue, albeit at a slower pace". But growth will then rebound to 1.5% in 2020.

Those with budget surpluses like Germany and the Netherlands will cut them, the Commission forecast, but those with deficits already close to the European Union ceiling of 3 percent like France and Italy, are likely to break that limit this year or next, setting themselves up for a clash with the European Union executive.

This is slower than 1.3% predicted in February, and well below the 1.9% growth in 2018.

Every EU member state including Britain is expected to see real GDP growth overall, with a bloc-wide average of 1.4%.

Following last year's budget surplus of 0.2% of GDP, the EC now estimates that this year's surplus could be 0.1% of GDP and 0.5% in 2020.

The Gross Domestic Product (GDP) is forecast to grow by 1.5 percent in 2020 in the euro area and 1.7 percent in the 27 member states, excluding the United Kingdom.

Romania's economy expanded by 4.1% year-on-year in 2018, compared to a growth rate of 7% in 2017, provisional data from the country's statistical board showed in April. At 6.9% in 2019 and 6.7% in 2020, the unemployment rate remains close to its record low of 6.1%, achieved in the previous boom in 2007.

Real wage growth is expected to strengthen, underpinned by strong labour demand, public sector salary increases and an increase in the minimum wage in 2019.

"Uncertainty related to a possible resolution of the US-China trade tensions remain elevated while the risk of further protectionist moves in US trade policy persists", said the report. On the external side, these include a further escalation of trade conflicts and weakness in emerging markets, particularly in China.

The ECB expects euro zone inflation at 1.2 percent this year and 1.5 percent in 2020 and has already announced plans to provide even more stimulus through a new round of ultra cheap loans to banks to help the economy.

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