According to economic forecasts published by the European Commission on 4th November, real GDP growth is expected to reach 1.3% in the EU and 0.8% in the euro area for 2014 as a whole. Growth is expected to rise slowly in the course of 2015, to 1.5% and 1.1% respectively, on the back of improving foreign and domestic demand. An acceleration of economic activity to 2.0% and 1.7% respectively in 2016 is expected to be driven by the strengthening of the financial sector. In 2014, the range of Member States' growth rates is expected to remain broad, from -0.7% (Croatia) to 4.6% (Ireland) however, growth differences are expected to decline by 2016. In 2015 and 2016, all EU countries are set to register positive growth. Moreover the unemployment rate is set to fall to 9.5% in the EU and 10.8 % in the euro area in 2016. In the EU, inflation is projected at 0.6% in 2014, 1.0% in 2015 and 1.6% in 2016. The reduction in general government deficits is set to continue. The deficit–to-GDP ratios in both the EU and the euro area are set to decrease further this year, albeit more slowly than in 2013, to respectively 3.0 % and 2.6 %. The debt-to-GDP ratios of the EU and the euro area are expected to peak next year at 88.3 % and 94.8 % respectively in the euro zone in 2015...
Read more