EU Interim Economic Forecasts: Growth Revised Slightly for 2007, with Downward Risks Increasing
added: 2007-09-11
Based on an update for the seven largest Member States in the European Union, the Commission forecasts economic growth in 2007 at 2.8% in the EU and 2.5% in the euro area. This represents a downward revision of 0.1 percentage points (pp.) compared with the spring forecast. European growth is expected to remain supported by sound fundamentals and a still favourable global environment. Nevertheless, the recent turbulence has clearly increased the downward risks to this outlook. On the inflation front, consumer prices in 2007 are expected to increase by 2.2% in the EU and 2.0% in the euro area (up by 0.1 pp. compared with the spring) as higher commodity prices take their toll.
