Cheaper oil and a weaker euro have brightened the growth outlook for the Eurozone with every member economy expected to grow for the first time since 2007, the European Commission said Thursday, even as geopolitical tensions and the financial market volatility due to diverging monetary policy in major economies as well as the turbulence linked to the developments in Greece pose significant risks.
The executive arm of the EU raised the growth forecast for Eurozone for this year and the next, citing strengthened domestic and foreign demand, very accommodative monetary policy and a broadly neutral fiscal stance.
In its winter forecast, the commission forecast 1.3% growth in the euro area for this year, which was higher than the 1.1% predicted in November. The growth outlook for 2016 was also raised to 1.9% from 1.7%. The economy was estimated to have grown by 1% in 2014. Click here to read more.