European Commission cuts Eurozone 2019 GDP growth forecast to 1.3% from 1.9% previously

The European Commission releases its latest economic forecasts of the region

• Eurozone 2019 GDP growth seen at 1.3% (previously 1.9%)
• Eurozone 2020 GDP growth seen at 1.6% (previously 1.7%)
• Eurozone 2019 inflation seen at 1.4% (previously 1.8%)

• German 2019 GDP growth seen at 1.1% (previously 1.8%)
• German 2020 GDP growth seen at 1.7% (unchanged)

• France 2019 GDP growth seen at 1.3% (previously 1.6%)
• France 2020 GDP growth seen at 1.5% (previously 1.6%)

• Italy 2019 GDP growth seen at 0.2% (previously 1.2%)
• Italy 2020 GDP growth seen at 0.8% (previously 1.3%)
• Expects Italy Q1 GDP growth to be 0.0% q/q

Prior forecasts can be found here. Cuts across the board with the main drag being Germany and France, leading to the deteriorating outlook in overall growth forecasts. As for risks faced by the countries in the region, the commission noted that the slowing down of China's growth momentum and uncertainty about US-China trade negotiations are weighing on the short-term outlook.