Commissioner Pierre Moscovici presented the Winter 2016 Economic Forecast showing a consumption-driven trend of moderate growth in spite of global challenges.
The European economy is now entering its fourth year of recovery and growth continues at a moderate rate, driven mainly by consumption. At the same time, much of the world economy is grappling with major challenges and risks to European growth are therefore increasing.
In the euro area, growth is projected to increase to 1.7% this year from 1.6% last year, and to climb to 1.9% in 2017. EU economic growth is forecast to remain stable at 1.9% this year and rise to 2.0% next year.
Valdis Dombrovskis, Vice-President for the Euro and Social Dialogue, said: "Europe is continuing its recovery, with growth broadly in line with our previous forecast in autumn. We have to remain attentive. Europe's moderate growth is facing increasing headwinds, from slower growth in emerging markets such as China, to weak global trade and geopolitical tensions in Europe's neighbourhood. It is important to continue structural reforms that can help our economies grow, withstand shocks in the future, and improve job opportunities for our population."
Pierre Moscovici,Commissioner for Economic and Financial Affairs, Taxation and Customs, said: "The European economy is successfully weathering new challenges this winter, supported by cheap oil, the euro rate and low interest rates. Nonetheless, the weaker global environment poses a risk and means we must be doubly vigilant. There is more work to do to strengthen investment, enhance our competitiveness in a smart way and complete the job of fixing our public finances."