EU raises growth forecast as political risks subside
The French election gave Europe a reprieve from populist threats
The European Commission sees stronger euro zone growth this year than previously forecast, partly on the outcome of the French election, reports Bloomberg.
1.7% growth projection for the euro zone economy is up from 1.6%, previously. Inflation is also expected to be slower than previous estimates.
European Commissioner for Economic Affairs Pierre Moscovici said on Thursday that “populism is on the outs in Europe and it’s not winning ground, but it still has a negative impact on investments.”
A statement from the commission noted that risks remain as the EU gears up for Brexit negotiation and possible trade tensions with the US.