Eurozone growth to be slower than anticipated

Growth expectations across the European Union and the eurozone have been cut.

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By :  ,  Financial Analyst

Growth across the eurozone and the continent for the rest of the year will be slower than anticipated, the European Commission has reported.

In new analysis, it reported that real GDP growth will be 1.3 per cent in the European Union and 0.8 per cent in the eurozone.

For the latter, the commission had originally forecast growth as being 1.2 per cent, but that has been wound down.

In 2015, growth is anticipated to continue, albeit at a slower pace – for the EU it will be around 1.5 per cent, for the eurozone it will be 1.1 per cent.

Part of the slight spur is attributed to improving foreign and domestic demand, which has tapered off during the second half of 2014.

Jyrki Katainen, vice president for jobs, growth, investment and competitiveness at the European Commission, said that the economic and employments situation on the continent "is not improving fast enough".

"The European Commission is committed to use all available tools and resources to deliver more jobs and growth in Europe," he continued.

"We will put forward a €300 billion investment plan to kick-start and sustain economic recovery. Accelerating investment is the linchpin of economic recovery."

Pierre Moscovici, commissioner for economic and financial affairs, taxation and customs, added that there is no "single, simple answer" to ensuring that the European economy stays on track.

"There is no single, simple answer to the challenges facing the European economy," Mr Moscovici explained.

"We need to act across three fronts: for credible fiscal policies, ambitious structural reforms and much-needed investment, both public and private. We must all assume our responsibilities, in Brussels, in national capitals and in our regions."

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