EU Cuts Growth and Inflation Outlook as ECB Decision Looms

  • Commission sees 2016 euro-area growth at 1.8%, inflation at 1%
  • Downside risks include hard landing in China, global slowdown

EU Commission Sees Euro Area Growth at 1.8%

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The European Commission cut its euro-area growth and inflation outlook for next year, citing more challenging global conditions and fading impetus from lower oil prices and a weaker euro.

Gross domestic product in the 19-nation bloc is set to grow 1.8 percent in 2016, down from a previous projection of 1.9 percent in May, the Commission said in its autumn forecast published Thursday. Inflation is seen accelerating to 1.6 percent in 2017 from 0.1 percent this year.