The Commission forecasts European economy to improve further in 2015 thanks to cheap oil, monetary stimulus and lower-valued euro.European Commission upgrades growth forecast for Euro-zone.

The European Commission forecasts growth in Eurozone to pick up to 1.5 percent

The Commission forecasts European economy to improve further in 2015 thanks to cheap oil, monetary stimulus and lower-valued euro.European Commission upgrades growth forecast for Euro-zone.

The European Commission upgraded its Euro-zone growth forecast for 2015 significantly on Tuesday, citing cheaper oil, ECB stimulus program and depreciating Euro in favor of exports.

“The near-term outlook for the EU economy has clearly improved. After hitting a soft patch last spring, GDP growth in the EU picked up again towards the end of 2014,” Marco Buti, Director General of Economic and Financial Affairs from the European commission said in a report.

The European Commission now forecasts growth in Eurozone to pick up to 1.5 percent from its previous forecast of 1.3 percent in February, according to the report.

The commission based its forecast on three factors: “Increased real household income and improved consumer confidence.”  Cheap oil prices, the European Central Bank’s monetary stimulus program which effectively reduces real interest rates, and the reduced value of the euro against other major currencies boosting European exports.

But Buti pointed out that the long lasting negative legacy of economic crisis means that action must be taken to support the recovery. He advocated “growth-enhancing structural reforms,” “re-orienting public expenditure towards more growth-enhancing investment,” and “the continued pursuit of fiscal responsibility.”

Source:AA

Nurullah Kırmacı / emlakcoulisse.com

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