European economy continues expanding

EPA-EFE//FELIPE TRUEBA

European economy continues expanding


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The European economy continues will continue to grow in 2019 with real GDP expected to increase in all 28 nations of the bloc.

“Growth is set to continue in all EU Member States and pick up next year, supported by robust domestic demand, steady employment gains. and low financing costs. Yet, risks to the outlook remain pronounced. On the external side, these include a further escalation of trade conflicts and weakness in emerging markets, particularly in China. In Europe, we should stay alert to a possible ‘no-deal Brexit’, political uncertainty, and a possible return of the sovereign-bank loop.”, said Valdis Dombrovskis, the Commission’s Vice-President in charge of the euro and financial stability.

The GDP is forecast to grow by 1.4% in the EU this year and 1.2% in the eurozone. Labour market conditions continued to improve despite a slowdown in growth towards the end of 2018. Inflation in the EU is expected to fall to 1.6% this year before rising to 1.7% in 2020.

Debt-to-GDP ratios are forecast to fall in most of the European Union in 2019 and 2020 as deficits remain low and nominal GDP growth should remain higher than the average interest rate on outstanding debt.

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