European Commission cuts 2019 economic growth forecast

The European Commission, in a report, released this Thursday, lowered its 2019 growth forecast to 1.9% from 2.0% previous as they see mounting risks from Italy.

Key highlights:

   •  2018 growth forecast at 2.1% (unchanged) and at 1.7% for 2020.
   •  Euro-zone inflation seen at 1.8% (1.7% previous) in 2018.
   •  Euro-zone 2019 inflation seen at 1.8% (1.7% previous) and at 1.6% in 2020.

Forecasts for Italy:
   •  Sees Italy deficit at 1.9% in 2018, 2.9% in 2019, 3.1% in 2020.
   •  Italy 2018 growth forecast at 1.1% vs. 1.3% previous.
   •  Italy 2019 growth forecast at 1.2% and for 2020 at 1.1%.

German economic forecasts:
   •  Germany 2018 growth forecast at 1.7% (previously 1.9%).
   •  Germany 2019 growth forecast at 1.8% (previously 1.7%).
   •  Germany 2020 growth forecast at 1.7%.