Trump, Brexit Pose Risk to Outlook of Euro-Area Economy, EU Says

by Dramelin 3:00 AM 0 comments

Mixed Growth?With uncertainty at such high levels, it?s more important than ever that we use all policy tools to support growth,? European Economics Commissioner Pierre Moscovici, said in a statement. Even as the inflation rate quickens, the ECB also stated that current gains are largely driven by energy prices and therefore don?t warrant a discussion about tightening monetary policy yet. Yet, with an increase in GDP of 1.6 percent, that?s still less than the 1.9 percent growth rate it witnessed in 2016, the commission said. The election of Donald Trump in the U.S. and the U.K.?s decision to leave the European Union are heightening economic risk in the euro area, the European Commission said, as it predicted growth would slow this year. ?The balance of risks remains on the downside although both upside and downside risks have increased,? the commission said.