Eurozone growth to slow to 1.3 pct in 2005 but to accelerate in 2006

0 Comments | AFP, November, 2005

BRUSSELS (AFP) — The eurozone economy will slow this year to 1.3 percent but growth will speed up to 1.9 percent next year as domestic demand gathers pace, the European Commission predicted.

The 2005 estimate, laid out in the commission's autumn economic forecasts, will mark a slowdown from the 2.1 percent registered last year.

The European Union's executive arm had estimated growth this year at 1.6 percent in its spring forecasts but has since said that the rate would be closer to 1.2 percent after a second-quarter downturn.

If confirmed, the figure would mark a slowdown from the 2.1 percent registered last year.

EU Monetary Affairs Commissioner Joaquin Almunia said the revision in the 2005 forecast was "mainly due to the oil prices", which have...