Brussels fears that the “worst is still to come” for the EU economy, after several shockwaves this week sparked fears of an economic collapse. Bloomberg’s Annmarie Hordern confirmed that the European Commission was panicking at the latest set of economic projections, after they cut growth figures for 2020. This comes as Britain’s own economy is forecast to grow at a “broadly stable pace” according to the EU’s own Autumn 2019 Economic Outlook
The official forecast predicted that the EU’s economy “looks to be heading towards a protracted period of more subdued growth and muted inflation”.
Hordern explained: “The worst is still ahead for the EU.
“That is the warning from the European Commission after they cut the Euro area growth and inflation outlook for 2020.
“They blame trade wars and political uncertainties for the dramatic weakness in the region.”
She continued: “According to officials, risks remain decidedly to the downside.
“France and Spain are proving more resilient than expected but Italy shows no sign of meaningful recovery.
“The Commission also predicts only muted growth for Germany.”
The Bloomberg reporter pointed to Germany’s recent industrial output data as evidence of another huge “drag” for Angela Merkel’s economy.
Earlier this week, the International Monetary Fund (IMF) has issued a fresh warning that Europe’s economy has weakened this year.
They urged Europe to prepare emergency plans to cope with an looming economic slump.
The fund issued an urgent warning the Eurozone’s economy has weakened significantly and urged EU leaders to prepare for a financial crisis.
On balance, Europe’s growth is projected to decline from 2.3 percent in 2018 to just 1 percent in 2019, according to the IMF.