Euro zone sees economic outlook worsening amid uncertain US trade policy

EU economic growth marred by external factors

Brussels now expects gross domestic product (GDP) in the single currency bloc to increase by 1.4 percent in 2020, down from 1.5 percent in its previous forecast in May.

The European Commission's summer forecast for the EU economy, released on July 10, kept the growth estimate for the European Union as a whole and the euro zone, while re-iterating its forecast for Bulgaria at 3.3 per cent this year and 3.4 per cent in 2020.

Valdis Dombrovskis, vice president for the euro and social dialogue, who is also in charge of financial stability, said: "The resilience of our economies is being tested by persisting manufacturing weakness stemming from trade tensions and policy uncertainty".

The weaker economic outlook contributed to a downward revision of inflation expectations, the commission said, cutting its estimate to 1.3% for this year and next from the 1.4% it previously estimated for both years. Domestic demand, in particular household consumption, continues to be a driving force for economic growth in Europe thanks to the continuing increase in the labor market.

France's economy will expand 1.3 per cent this year and 1.4 per cent in 2020, the commission estimated, leaving unchanged its forecast for this year but lowering the estimate for the next, earlier seen at 1.5 per cent. Domestically, Brexit remains a major source of uncertainty, noted the forecast. It also revised down its estimate for next year's growth, which is now seen at 1.4 per cent instead of the 1.5 per cent forecast in May.

MPs Back Liberalising Same-Sex Marriage And Abortion Laws In Northern Ireland
However, if Stormont has been restored before the regulations have been passed, the change would not go through. The abortion amendment, put forward by Labour colleague Stella Creasy , was passed with 332 votes to 99.

It warned that the "extended economic confrontation between the USA and China, together with elevated uncertainty around U.S. trade policy could prolong the current downturn in global trade and manufacturing and affect other regions and sectors".

The commission underlined that economic issues between the US and China may prolong downturn in global trade and manufacturing.

In addition to Brexit, there were other significant risks surrounding near-term growth drivers and economic momentum in the euro area. The expected rates of inflation for 2019 and 2020 are 1.8% and 1.9% respectively.

The Commission publishes four economic forecasts each year.

The European Commission's next economic forecast will be the autumn economic forecast in November 2019.

Related News:

  • Kohli and Tendulkar speak up on Dhoni's retirement

    Kohli and Tendulkar speak up on Dhoni's retirement

    In the World Cup, Dinesh Karthik has got a couple of opportunities, but he has failed to leave an impact in the middle-order. Rohit also scored five centuries during the CWC19, the most by a batsman in a single edition of the World Cup.
    NY  showers confetti, love on US  women's soccer team

    NY showers confetti, love on US women's soccer team

    Aly Hoover, 12, of Glen Ridge, New Jersey, stood at the sidelines with a poster of the face of Alex Morgan , one of the team's stars.
    Tommy Robinson jailed for nine months over contempt of court

    Tommy Robinson jailed for nine months over contempt of court

    Several supporters of Tommy Robinson have been arrested following clashes with police after he was jailed for contempt of court. In a written verdict they found that he had created "a real risk that the course of justice would be seriously impeded".
  • Free Slurpees for 7-Eleven Day!

    Free Slurpees for 7-Eleven Day!

    As usual, 7-Eleven will be giving away small Slurpees on July 11 from 11:00am - 7:00pm to celebrate their birthday. We provide weekly newspapers serving Ocean and Monmouth Counties that are free every day, not just on 7/11.
    Apple expected to release notch-less iPhone as soon as next year

    Apple expected to release notch-less iPhone as soon as next year

    The new range of iPhones are expected to feature OLED displays with varying screen sizes of 5.4-inches, 6.1-inches and 6.7-inches. This means that through this kind of feature, the user can use any part of the notchless iPhone display for authentication.
    Judge Blocks DOJ Request To Switch Lawyers In Census Citizenship Case

    Judge Blocks DOJ Request To Switch Lawyers In Census Citizenship Case

    Attorney General William Barr said on Monday that he believes the White House can legally add a citizenship question to the 2020 U.S.
  • France adopts pioneering tax on tech giants Google, Amazon, Facebook

    France adopts pioneering tax on tech giants Google, Amazon, Facebook

    The tax rate would be set at 3% and could hit some of America's biggest tech companies, including Amazon , Facebook and Google . The French government says the tax does not specifically target USA companies and will affect European and Asian firms as well.
    Princess Charlotte Looks Exactly Like a Young Queen Elizabeth in New Photos

    Princess Charlotte Looks Exactly Like a Young Queen Elizabeth in New Photos

    Hill agreed, saying, "I imagine that people were concerned that she was not cradling the baby's head adequately". She wasn't there as the Duchess but as a pal. 'I respect Meghan Markle's hustle and I respect her game.
    Inside the world premiere of The Lion King

    Inside the world premiere of The Lion King

    Beyoncé pulled out all the stops when she attended the Lion King premiere at the Dolby Theatre in Hollywood on Tuesday night. One day I'm there Jon asked me to do some singing stuff, another day he asks me to do some lines.
  • Will India vs New Zealand restart? When will England play?

    Will India vs New Zealand restart? When will England play?

    It means New Zealand will now bat the remainder of their 50 overs before India have 50 overs to chase the total. India's top order was sliced open by a fiery opening spell by New Zealand's new ball bowlers.
    NASA Awards Launch Services Contract for Groundbreaking Astrophysics Mission

    NASA Awards Launch Services Contract for Groundbreaking Astrophysics Mission

    The PUNCH mission was supposed to be executed on a rocket by Pegasus but the agency chose to launch it in a different spacecraft. Currently, launch of the IXPE is scheduled for April 2021 from Complex 39A at the Kennedy Space Center, Cape Canaveral, Florida.
    Galaxy Note 10 and Note 10

    Galaxy Note 10 and Note 10

    With the feature, you'll be able to use the Galaxy Note 10 as its own computer and wirelessly connect to keyboards and a mouse. Last year, the hero colour for the Galaxy Note9 is Ocean Blue and it comes with a contrasting yellow S Pen stylus.


Most liked

A Telstra Outage Has Caused Huge Technical Issues Across the Nation
A huge Telstra outage has taken out ATMs and EFTPOS machines around the country, potentially affecting thousands of businesses. Customers had complained to CBA via social media that their EFTPOS machines were displaying error messages.

Amazon Game Studios is working on a Lord of the Rings game
With Lord of the Rings getting the Amazon TV treatment, perhaps it is not that surprising that a game is being made as well. Additionally, Leyou also owns Athlon Games , who previously announced its own Lord of the Rings project previous year .

Blackhawks acquire Nylander from Sabres
The Swede, the eighth overall pick by the team's old regime in 2016, never showcased the tenacity to match his array of talents. He also showed some promising signs while helping Finland to its fifth world junior hockey title in January.

Multi-millionaire Jeffrey Epstein charged with sex trafficking
Former President Bill Clinton praised his intellect and philanthropic efforts and was a frequent flyer aboard his private jet. Those who voted to confirm Acosta in 2017 said they are concerned but have not demanded his resignation, POLITICO reported .

Tucker Carslon, Rep. Ilhan Omar Feud Over Primetime Remarks
He also suggested to viewers that "maybe we are importing people from places who are simply antithetical to ours". Omar has not held back when talking about the aspects of the country she sees as needing improvement.

Amazon Announces 48-Hour Prime Day
Heads up, bargain hunters: eBay just announced plans to hold a " Crash Sale " on July 15 to compete with Amazon Prime Day . More than a million deals will be on offer, we're told, with "the biggest Prime Day deals ever on Alexa-enabled devices".

Chris Woakes hails 'incredible' England after hosts power into World Cup final
England took just 32.1 overs to reach their victory target and book their final date with New Zealand at Lord's on Sunday. Morgan struck a boundary to seal the win and move England to 226-2 after Australia was 223 all out in 49 overs.

Bruno Fernandes meets with agent to discuss Manchester United move?
But, Correio de Manha suggest that the Premier League heavyweights are yet to present a formal bid for the Portuguese worldwide . The Portuguese is believed to be one of Ole Gunnar Solskjaer's main targets yet a transfer is struggling to be completed.

New Zealand beat India to reach World Cup final
But Kane Williamson's side posted 239-8 after batting first on a tricky pitch and then defended the total with some excellent fast bowling.

Bakery mixup leaves woman with marijuana-themed birthday cake instead of Moana
Luckily, Kensli, 25, and her mom found the mix-up hilarious, and she shared a picture of the druggy dessert on social media. Her daughter, Kensli Davis, posted on Facebook saying her mom had ordered the cake from a local Dairy Queen.

Taylor Swift emerges as highest-paid celebrity on Forbes Celebrity 100 list
The magazine calls Akshay "Bollywood's top-earning star", with an earning of at least 5-10 million USD (Rs 35-70 crore) per film. No doubt, he is called one of the biggest superstars of the country and earns huge profits every year.

Apple quietly updates Macs to remove Zoom's risky web server
Additionally, you can also disable the option to automatically turn on your camera when you join a Zoom video call. The challenge with something like this Zoom vulnerability is that users might simply be unaware of any danger.

Dow Jones Industrial Average reaches 27,000 for the first time ever
In the first of two testimonies on successive days, Powell said "broad" global weakness is clouding the USA economic outlook. At the moment, the USA economic landscape is a mixed one: The job market appears resilient, but economic growth is slowing.

UK Ambassador to US Who Criticized Trump Resigns, British Foreign Office Says
As Brexit looms, Britain is also hoping for a free trade deal with the USA to mitigate the impact of leaving the European Union. In the cables, Darroch had described Trump as "radiating insecurity" and described his administration as "clumsy and inept ".

Rouhani warns of 'repercussions' over British detention of oil tanker
Iran has condemned the British government's move as "maritime piracy" and summoned Britain's ambassador three times in protest. Emmanuel Bonne, a French presidential envoy, is in Iran this week for talks aimed at resolving the crisis.