EU Sees Risks Mounting in an Economy Already Under Pressure
- Lowers 2019 euro-area GDP prediction to 1.9% from 2%
- Sees high uncertainty, forecasts wider Italian budget deficit
This article is for subscribers only.
Global trade tensions, Italy’s fiscal battles and U.S. overheating pose risks to the euro-area economy, the European Commission warned as it lowered its forecast for the coming year.
While the list of threats in the commission’s report aren’t a surprise, they come amid mounting signs of a persistent slowdown in the euro area. The European Central Bank has said growth is merely stabilizing at a more sustainable pace, but there’s a question of whether there’s worse to come.