Juncker’s legacy in tatters as Eurozone growth rates slashed in chief’s final forecast – News 247


 EU Commission officials have suggested the previous period of economic growth will start withering in the coming years The bloc’s economy “looks to be heading towards a protracted period of more subdued growth and muted inflation”, the Autumn 2019 Economic Forecast will say The forecast is the last of Jean-Claude Juncker’s five-year tenure as European Commission President  Gross Domestic Product has been forecast to grow next year and in 2021 but figures have been significantly revised down on previous predictions  The Eurozone single currency bloc is expected to feel the brunt of the slump with GDP growth predicted to be lower than forecast in the summer  In 2020, growth has been forecast at 1.1 percent and at 1.2 percent for the following year  Whereas an EU-wide prediction claims GDP will rise by 1.4 percent in 2019, 2020 and 2021  The report will say: “With Global GDP growth set to remain weak, growth in Europe will depend on the strength of more domestically-oriented sectors ” It adds: “Domestic growth drivers alone are unlikely to be sufficient to power strong growth ” Italy’s ailing economy is once against driving fears across the euro area, with the country’s mounting debt pile a major concern  Rome’s government debt has been forecast to increase from 136.2 percent of GDP this year to 137 4 percent in 2021. But overall the economy is predicted to just about show signs of signs of growth, according to the Commission’s forecasts  Growth of 0.1 percent this year will increase to 0.4 percent in 2019 and 0.7 percent in 2021  Elsewhere, the Eurozone’s public debt-to-GDP ratio is forecast to continuing declining to 84 1 percent in 2021. The report will, however, say: “Government balances, by contrast, are expected to deteriorate slightly ”  This is down to “somewhat looser discretionary fiscal policies in some member states”, it adds  In a forecast that will panic Brussels, Germany’s top economic advisers have slashed growth forecasts for the bloc’s financial powerhouse  The Council of Economic Experts have cut its growth predictions for this year from 0 8 percent to 0.5 percent and 1.7 percent to 0.9 percent next year. Germany has averaged annual growth of 2 percent in the past five years  But that trend is set to end as the economy stalled and is now on the brink of a technical recession after shrinking by 0 1 percent in the three months to June.  Trending  Volker Wieland, one of the Council of Economic Experts, told the Financial Times: “We are dealing with structural change Global trade is stalling and there is digital disruption – does this mean the long boom for Germany is over?” Another member Isabel Schnabel said: “The long-run trend in most advanced economies is a slowdown of productivity growth, but what makes it more serious in Germany is that we also have rapid demographic change that is more acute than elsewhere eventually leading to a shrinking workforce ” The council urged the Berlin government to scrap its commitment to a balanced budget rather than allowing fiscal policy to boost the economy amid the slowdown  Professor Wieland said: “The Schwarze Null has been a pretty good political agreement while we’ve been in a boom phase, with rising employment, tax income and expenditure  “But it is not something you need to stick to in more difficult times.”

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