Today the European Commission announced that they are lowering their forecast about the expected economic growth across Europe for 2020. According to their statement, the main reason for this pessimism arises from the United States and the way Donald Trump’s administration is approaching international trade. Moreover, the European Commission also lowered their inflation forecast. They believe that in the current uncertain economic climate inflation rates will have more trouble climbing to the ECB’s goal of 2%.
Last year the overall economic growth within the eurozone was 1.9%, but in 2019 it is expected to be only 1.2%. The trade war between the United States and China, the possibility of a trade conflict between the US and the European Union directly, the uncertainty on the oil market, as well as the ongoing issue with Brexit are just some of the factors that have constricted growth in the eurozone over the past year.
Within Europe itself the main economic concerns come from Germany, the industry leader of the European Union, as well as Italy, whose budget deficit and the government’s fiscal policy continue to pose risks for the eurozone.
