European Union registers 'highest economic growth rate in 10 years'

European Union registers 'highest economic growth rate in 10 years'

The European Commission released its Autumn Economic Forecast on Thursday, that shows projections of fast grow on eurozone's economy, at the fastest pace within this decade, at 2.2%.

With the growth forecast for 2017 slashed by 0.3 percent, it also expects the United Kingdom economy to only grow marginally over the next two years - by 1.3 percent in 2018 and by 1.1 percent in 2019, the year Brexit is now scheduled to happen.

Macron is now pushing through significant labor reforms in France and hopes around those reforms, combined with his repeated calls for enhanced European economic cooperation and consolidation, have helped push growth expectations for France for 2017 up to 1.6 percent from the earlier 1.4 percent.

This was substantially higher than the previous forecast of 1.7 percent and comes just after the EU's latest GDP growth figures resoundingly beat expectations.

Strong export growth, particularly in services, and a fall in imports related to the contraction in investment is pushing up the current account surplus, which is forecast to approach 10% of GDP in 2017.

Next year, the general government surplus is expected to decline to 0.3% of gross domestic product.

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The agency noted that the European Union economy continues to glide forward on the wings of favorable financing conditions made possible by accommodative monetary policies, with additional thrust from improving labor market conditions and stronger global growth and trade.

With the latter in mind, the European Commission revised its growth forecasts for the United Kingdom, cutting projected 2017 growth to 1.5 percent from 1.8 percent and forecasting a further slowing down in 2018 and 2019 respectively. "The government deficit is moving closer to balance but risks to the fiscal outlook remain".

The optimism, the commission said, is fueled by increased private consumption, favorable lending conditions, improved economic growth around the world and falling unemployment in Europe. "We see good news on many fronts, with more jobs being created, rising investment and strengthening public finances", economic and financial affairs commissioner Pierre Moscovici said in a statement.

Unemployment across the currency union is expected to drop faster than expected in May, dipping to 9.1% by year-end and then to 8.5% in 2018 and 7.9% the following year.

Greece's economy is growing again, and the recovery is expected to strengthen as investment rebounds and consumption growth rises.

The EC warned that Hungary's labor market is becoming "increasingly tight" and said price pressures are expected to grow over the forecast horizon. Core inflation, which excludes energy and unprocessed food prices, by contrast, has been rising but remains subdued, reflecting the impact of a prolonged period of low inflation, weak wage growth as well as remaining labour market slack.

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