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2/13, 11:12 AM (Source: TeleTrader)
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Eurozone GDP growth seen at 1.2% in 2020

Eurozone's economic growth is expected to remain stable at 1.2% in 2020 and 2021, the European Commission said in its Winter 2020 Economic Forecast released on Thursday. The report noted that the gross domestic product (GDP) growth forecast for the whole European Union was revised downward from 1.5% to 1.4% for both 2020 and 2021.

The Commission stressed that some of the downside risks to the economy faded after the US and China reached a phase one trade deal and the UK formally left the EU, but warned that new downside risks arose due to the outbreak of the coronavirus in China. "The baseline assumption is that the outbreak peaks in the first quarter, with relatively limited global spillovers. The longer it lasts, however, the higher the likelihood of knock-on effects on economic sentiment and global financing conditions," the Commission added.

The EU also pointed out that there is still "considerable uncertainty" over Britain's relationship with the EU after the Brexit transition period expires at the end of the year.

Breaking the News / NP