European Commission cuts growth forecast
Wednesday 31 March 1999
The latest round of gloomy statistics reflect lower economic expectations from the biggest EU nations, including Germany where the slowdown in 1999 is expected, according to a separate EU document, to be "more pronounced than in most other member states".
The European Commission expects euro zone gross domestic product to rise by just 2.2 per cent in 1999 and 2.7 per cent in 2000, compared with forecasts last autumn of 2.6 and 2.9 per cent respectively.
Growth in all 15 EU countries was also marked down at 2.1 per cent for 1999 as opposed to 2.4 per cent predicted earlier. The UK economy is also expected to perform worse than predicted this year; growth for 1999 is expected to be 1.1 per cent, rather than the 1.3 per cent forecast last October. But for 2000, Brussels expects the UK economy to grow at 2.3 per cent, as opposed to the 2.1 per cent it predicted last year.
There was also praise for the UK in Commission recommendations on member states' economic policy guidelines, which singled out the UK employment rate as one of the best in Europe. But the document added: "Growth of small business, innovation and research and development expenditure are all relatively weak."
Germany's slowdown is blamed on the country's greater-than-average exposure to world trade and some domestic influences, including the depressed construction industry.
Although the new figures put further pressure on the euro, the Monetary Affairs Commissioner, Yves-Thibault de Silguy, insisted that its current level was "not a source of concern".
Malaysia Airlines plane crash exposes alarming flaw in airline security: over one billion flights made last year without stolen-passport check
International Women's Day 2014: The shocking statistics that show why it is still so important
Teacher shows sex tape featuring herself to pupils during class by mistake
Swarm of killer bees sting woman 1,000 times
Dead woman's body lay decomposing in garage for six years before she was found
Britain's top vet sparks controversy with call for ban on slashing animals' throats in 'ritual' slaughters for halal and kosher meat products
If you're horrified by a flame-roasted dog, you should be shocked at a hog roast
Poor 'live like animals' says Boris's privately educated sister after going on 'poverty safari'
Exclusive: Impact of immigrants on British workers ‘negligible’
Vince Cable: Teachers 'know absolutely nothing' about the world of work
Ukraine crisis: Russia pledges to 'retaliate against sanctions' as Ukrainian president says Crimea vote will not be recognised
- 1 International Women's Day 2014: The shocking statistics that show why it is still so important
- 2 Australian man Rod Sommerville reacts to bite from deadly snake by reaching for cold beer
- 3 Teacher shows sex tape featuring herself to pupils during class by mistake
- 4 Singapore sting: Sky-high prices are pushing locals to the edge of affordability
- 5 Swarm of killer bees sting woman 1,000 times
iJobs Money & Business
£42000 - £45000 per annum + Benefits: Pro-Recruitment Group: Big 4 - Specialis...
£500 - £600 per day: Harrington Starr: Agile Scrum Master Certified Scrum Mast...
£45000 - £60000 per annum + BONUS + BENEFITS: Harrington Starr: A leading prov...
£50000 - £60000 per annum + Bonus and Benefits: Harrington Starr: Harrington S...