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EU raises economic growth forecast

The European Commission has raised its 2006 forecast for eurozone growth to 2.1% from 1.9%, due to the growing strength of investments, exports and the German economy.

Its Spring economic forecast, published on Monday (8 May), also projects economic growth of 2.3 percent for the EU as a whole this year.

"Both the EU and the Euro area are expected to grow markedly stronger this year," said economic and monetary affairs commissioner Joaquin Almunia.

Germany, which is Europe's...

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Oil prices pose big a threat to economic growth (Photo: European Community, 2006)

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