Real GDP growth is expected to be 1.3% in the European Union and 0.8% in the euro area in 2014, revised downward from six months ago when growth was forecast to be 1.6% and 1.2%, respectively.
In its autumn economic forecast released Tuesday, the European Commission said it expects “weak economic growth for the rest of this year in both the EU and the euro area.”
EU growth is forecast to rise to 1.5% in 2015 (down from the spring forecast of 2%) and euro area growth is expected to be 1.1% (down from 1.7% forecast six months ago).
Jyrki Katainen, European Commission vice president for jobs, growth, investment and competitiveness, said in a press release: “The economic and employment situation is not improving fast enough. The European Commission is committed to use all available tools and resources to deliver more jobs and growth in Europe. We will put forward a €300 billion investment plan to kick-start and sustain economic recovery. Accelerating investment is the linchpin of economic recovery."