Economic growth in the euro area will decelerate over the next two years, in line with a further slowing momentum of foreign trade, the European Commission said in its Autumn forecast, published Thursday.
In the near term, economic growth is expected to continue at about the same pace as in the first half of the year, resulting in euro area growth of 2.1 percent in 2018, unchanged from previous projection.
Real GDP was forecast to grow 1.9 percent in 2019 and 1.7 percent in 2020. The outlook for 2019 was trimmed from 2 percent.
Headline inflation in the euro area remains mainly driven by developments in energy prices.
HICP inflation in the euro area was projected to rise to 1.8 percent in 2018 and in 2019 before moderating to 1.6 percent in 2020. In July, EU had forecast 1.7 percent inflation for both 2018 and 2019.
The balance of risks to the growth outlook was tilted to the downside, the EU noted.
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