EU trims economic growth forecasts amid trade tensions
BRUSSELS — The European Union has trimmed its forecasts for economic growth next year as global trade tensions weigh on the continent’s export-focused manufacturers.
The EU executive commission said Wednesday it was reducing its forecast for next year for both the 19-country eurozone and the wider 27 countries that are due to remain in the block after Britain leaves, which is scheduled to happen in October.
Eurozone growth is expected to pick up from 1.2% this year to just 1.4% in 2020, down from a previous estimate of 1.5%.
The commission said there is a risk that the economy might do worse than that forecast due to “any further escalation of trade tensions.”
The U.S. government has imposed tariffs on several countries, particularly China, which has weighed on global trade and manufacturing.