BRUSSELS, May 5 (RIA Novosti) – The European Commission has projected growth in the Eurozone will reach 1.2 percent this year, as the EU economic outlook is strengthening, according to the spring 2014 European Economic Forecast published Monday.
“Real GDP growth is 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,” the forecast said.
The European Commission also noted that domestic demand is strengthening “as the legacy of the economic and financial crisis gradually fades.” Labor market conditions have also improved with unemployment figures on the decline.
“The debt-to-GDP ratios of the EU and the euro area are expected to peak this year at 89.5 percent and 96.0 percent respectively, as continued improvement of primary surpluses, combined with stronger economic growth, are expected to put debt ratios on a downward path,” the forecast added.
The commission also noted the strengthening of domestic demand is boosting the self-sufficiency of EU member states, unlike last decade when exports were the primary driver of Europe’s economy.
