Press Release: EU interim forecasts: growth moderates while inflation temporarily surges

Economic growth is expected to slow to 2.0% this year in the European Union (1.8% in the euro area) as some of the downside risks identified in the autumn forecasting exercise – the ongoing financial turmoil, a sharp slowdown in the US, and high commodity prices – have materialised. This is 0.4 percentage point less, for both areas, than forecast in November. Inflation this year is expected to average 2.9% in the EU and 2.6% in the euro area following the strong rise in food and energy prices. This is ½ a percentage point more than compared to the previous forecast. But inflation is expected to return to more normal levels in the last quarter of 2008.

European Commission: DG Economic and Financial Affairs: EU Economic situation: Interim forecast February 2008 http://ec.europa.eu/economy_finance/thematic_articles/article12054_en.htm

European Commission: News, 21.2.08: EU economic growth to slow, says interim report http://ec.europa.eu/news/economy/080221_1_en.htm

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