U.S. protectionism could undermine modest growth forecast for eurozone, says EU Commission

Associated Press

FRANKFURT, Germany (AP) — The economy of the European Union is headed for only modest growth in coming months as consumers regain some of the purchasing power they lost to inflation, the bloc’s executive commission said Friday. Growth is forecast to come in next year at 1.3% for the 20 countries that use the euro, while inflation is expected to ease to 2.1%, just above the European Central Bank’s target of 2% and a substantial relief from the peak of 10.6% recorded in October 2022. The bloc’s economy remains at risk from protectionist moves by major trading partners, the report said.