EU Cuts Eurozone Growth Forecast as Italy Debt Soars




The European Commission cut its eurozone growth forecast for 2019 on Tuesday, with overspending by populist-run Italy again a concern.

In its quarterly forecast, the EU executive blamed the downward trend on the slowdown in China and US protectionism that has crimped global confidence.

The commission said growth in the 19-nation single currency bloc would hit just 1.2 percent this year, down from the already weak 1.3 percent predicted in February.

“The European economy is showing resilience… yet risks to the outlook remain pronounced,” said EU vice president Valdis Dombrovskis, warning of “further escalation of trade conflicts and weakness in emerging markets, in particular China.”

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