In its latest six-monthly forecast, the European Commission said economic growth in the 27-nation European Union would slow to 1.8 per cent in 2009 from 2.0 per cent this year. Growth in the 15-nation eurozone would fall to 1.5 per cent from 1.7 per cent. In its November forecasts, the Commission predicted EU growth of 2.4 per cent in 2008 and 2009 and in the eurozone 2.2 per cent and 2.1 per cent respectively.
“The financial turmoil is proving deeper, wider and longer-lasting while the downturn in the US looks set to be more pronounced and protracted than assumed in the autumn forecast,” the Commission said.
“The balance of risks for the growth outlook continues to be tilted to the downside, especially for 2009, while the risks for inflation are on the upside.”