The European Commission releases its latest economic forecasts of the region
- Eurozone 2019 GDP growth seen at 1.3% (previously 1.3%)
- Eurozone 2020 GDP growth seen at 1.5% (previously 1.6%)
- Eurozone 2019 inflation seen at 1.4% (unchanged)
- Germany 2019 GDP growth seen at 0.5% (previously 1.1%)
- Germany 2020 GDP growth seen at 1.5% (previously 1.5%)
- France 2019 GDP growth seen at 1.3% (unchanged)
- France 2020 GDP growth seen at 1.5% (unchanged)
- Italy 2019 GDP growth seen at 0.1% (previously 0.2%)
- Italy 2020 GDP growth seen at 0.7% (previously 0.8%)
Prior forecasts can be found here. The commission warns of euro area risks as it slashes Germany's 2019 growth forecast by more than half and sees Italy's debt-to-GDP being at 133.7% this year. The downgrades are the most noticeable thing here but it's not to say that it wasn't coming or expected.
Regardless, the euro has been brought lower to 1.1177 against the dollar but the reaction is more pronounced in the bond market as Germany's 10-year bund yields fall to -0.037%, near 4-week lows on the forecasts here.
