Terror and Refugees May Weigh on Euro-Area Economy, EU Says
- `Geopolitical tensions' impacting global outlook, bloc warns
- High private and public debt `holding back' investment
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Conflict in the Middle East, the biggest wave of refugees to Europe since World War II and the terrorism threat is having an impact on the euro area’s economy, the European Commission said, underscoring the fragile nature of the region’s recovery.
With euro-area growth forecast to be 1.8 percent in 2016, compared to 2.8 percent in the U.S., the European Union warned that international instability could further undermine efforts to resuscitate the currency zone’s economy.