BRUSSELS, November 4 (RIA Novosti) — The European Commission (EC) in its autumn forecast has downgraded eurozone's debt in 2014-2015 compared to the spring forecast and expects it to decrease to 93.8 percent of the GDP in 2016.
"The debt-to-GDP ratios of the EU and the euro area are expected to peak next year at 88.3% and 94.8% respectively," the forecast published on the commission's official website read.
According to the autumn economic forecast, the EC expects growth of the region's sovereign debt in 2014 to 94.5 percent from 93.1 percent in 2013. In its May forecast, the EC predicted an up to 96 percent growth in 2014.
"In June 2014, the public debt reached 57.5% of GDP, and it could increase close to 60% of GDP – the new fiscal rules limit – by the end of 2016, when public borrowing for the construction of the highway gains momentum. However, a close to balanced budget should reduce additional borrowing needs for deficit financing," the forecast stated.
On May 5, the EC projected growth in the Eurozone will reach 1.2 percent this year, as the EU economic outlook was strengthening. The real GDP growth was projected to advance with moderate momentum in 2014, at 1.6 percent and 1.2 percent respectively in the EU and the euro area, before gaining some further speed to respectively 2.0 percent and 1.7 percent in 2015.