US GDP Growth Forecast 2.2% Decline, Global Economy to Remain Weak in 2016

According to 2016 Spring Economic Forecast made by the European Commission the United States economy grown is assessed by 0.4 percentage points less than earlier.

MOSCOW (Sputnik) — The European Commission in Tuesday's Spring 2016 Economic Forecast has reduced its growth expectations for the United States economy by 0.4 percentage points to 2.25 percent for 2016.

"Growth is now expected to slow progressively to roughly 2¼% in both 2016 and 2017 amid a maturing cycle and closing output gap," the commission said in the report.

Increased global economic turmoil, the slump in the energy sector and consequent inventory adjustments have weakened the prospects for US growth, according to the report. In its winter forecast, the European Commission predicted a GDP growth rate of 2.7 percent for the world's largest economy.

At the same time, global economic growth will remain weak and is forecast to pick up only modestly by 3.1 percent in 2016 and 3.4 percent in 2017, a spring 2016 Economic Forecast by the European Commission indicated Tuesday.