(11 May 2017) – The European economy has entered its fifth year of recovery, which is now reaching all EU Member States. This is expected to continue at a largely steady pace this year and next.
In its Spring Forecast released today, the European Commission expects euro area GDP growth of 1.7% in 2017 and 1.8% in 2018 (1.6% and 1.8% in the Winter Forecast).
GDP growth in the EU as a whole is expected to remain constant at 1.9% in both years (1.8% in both years in the Winter Forecast).
More generally: global growth is to increase; there is a temporary rise in headline inflation; private consumption is likely to slow with inflation, while investment remains steady; unemployment continues to fall; the state of public finances is improving; risks to the forecast are more balanced but still to the downside.