The European Commission has lowered the outlook for euro area GDP growth

06 May 2014

According to, the European Commission has lowered the forecast for eurozone GDP growth, noting that low inflation will remain a problem for the euro zone for at least the next two years.

Inflation in the euro area will be 0.8% this year and 1.2% in 2015 both indicators remain below the ECB target mark of 2%. Economics currency bloc, the European Commission projected to increase by 1.7% in 2015, before the commission was expecting growth of 1.8%.

"Inflation will remain low, as energy prices continue to decline, demand is growing slowly, and unemployment is still high," – said the commissioner Siim Kallas.

"The most important risk for the European economy today is the tension and uncertainty related to the crisis in Ukraine," – he said.

Recall that prices in the euro area declined in March for the third month in a row. The statistical agency of the European Union said on Monday that producer prices fell 0.2% in February.

In terms of annual growth rates fell by 1.6%, which was less decline compared with 1.7% the previous month.