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    European Commission Expects Eurozone GDP Growth at 1.3% in 2015

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    The European Commission said that due to the help of the quantitative easing in the eurozone and the EU Investment Plan, GDP in the euro area is set to grow this year by 1.3 percent and by 1.7 percent in the EU.

    MOSCOW (Sputnik) — The GDP of the euro area is expected to increase by 1.3 percent in 2015, while the European Union's GDP will grow by 1.7 percent, the European Commission said Thursday in its winter 2015 European Economic Forecast.

    "With the help of important policy measures such as quantitative easing in the euro area and the EU Investment Plan, GDP is forecast to grow this year by 1.3 % in the euro area and 1.7 % in the EU (both 0.2 pp. higher than forecast last autumn), before picking up further to1.9 % and 2.1 % in 2016 (up 0.2 pp. and 0.1 pp. respectively)," the Commission said in the forecast.

    The forecast also highlights that deflation in the euro area will be at 0.1 percent in 2015.

    The Commission added that the economic prediction this year was developed under conditions of uncertainty, as geopolitical tensions over the Ukrainian crisis were still high.

    "Geo-political risks are still high, as tensions related to the Russia-Ukraine conflict could increase, and the economic impact of sanctions and countersanctions could prove larger than expected in particular if they last longer than assumed," the forecast reads.

    Despite the difficulties, the Commission stated that the economies of the European Union member states were expected to grow this year for the first time since 2007.

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