EU Commission out with their latest review 3 May 2016
- 2017 forecast +1.8% vs +1.9% prev
- EZ 2016 inflation f/cast +0.2% vs +0.5% prev
- 2017 inflation +1.4% vs +1.5% prev
- Germany 2016 GDP +1.6% vs +1.9% prev, 2017 GDP +1.6% vs +1.9% prev
- UK 2016 GDP +1.8% vs +2.4% prev, 2017 GDP +1.9% vs +2.2% prev
- France 2016 GDP +1.3% vs +1.4% prev. 2016 +1.7% as prev
- France will miss nominal budget deficit reduction target next year unless it takes action
- Italy's debt won't fall this year after rising last year and breaching EU rules
- Italy's structural deficit will rise in 2016 rather than fall as it should
- Spain's structural deficit will rise this year and next, breaching EU recommendations
- Spain will miss goal of cutting deficit below 3% this year and also next year.
Says the EU Commission in their Spring report:
"The Eurozone economy is likely to remain broadly stable this year but faces substantial downside risks to growth and inflation owing to emerging market risks and a renewed drop in oil prices. Domestic demand will likely power currency area growth this year,in part to improving labour markets and higher real disposable incomes. Government spending will also be broadly supportive, the Commission said, although it could be affected by the
region's migration challenges."
Full report here
A timely reality check from the EU Commission as to how much work still remains in making the EZ a credible entity, let alone economic success. The UK doesn't get away from their concerns either as they make a significant downward revision to GDP.
