Brussels Cuts Growth Forecasts as ‘Protracted’ Slowdown Bites

Brussels has cut its growth forecasts for the eurozone to their lowest level since the height of the bloc’s sovereign debt crisis, warning the slowdown will persist for at least the next two years, the Financial Times reported. The European Commission on Thursday reduced its annual projection for eurozone GDP growth to 1.1 per cent in 2019 — down 0.1 percentage point from its last forecast and marking the lowest annual expansion since 2014. The commission also cut its projection for 2020 by 0.2 percentage points to 1.2 per cent. The commission issued a series of grim warnings about the health of the global economy, noting that international trade tensions, the risk of a disorderly Brexit and a weakening global manufacturing sector had led to a “protracted period of subdued growth and low inflation”. Read more