Eurozone's GDP expectation for 2020 drops

By Gokhan Ergocun

ISTANBUL (AA) - Euro area's gross domestic product (GDP) expectation for 2020 dropped from 1.5% to 1.4%, the European Commission said on Wednesday.

Eurozone's GDP forecast for 2019 remained unchanged as 1.2% for 2019, the commission noted in a press release.

"Growth in the euro area was stronger than expected in the first quarter of the year due to a number of temporary factors such as mild winter conditions and a rebound in car sales," the commission said.

It also stressed that external factors, such as global trade tensions and political uncertainty, affected European economy.

Meanwhile, European Union's GDP forecasts for 2019 and 2020 was the same with previous expectations, 1.4% and 1.6%, respectively.

Valdis Dombrovskis, the vice president for the euro and in charge of financial stability, said: "All EU economies are still set to grow this year and next, even if the robust growth in Central and Eastern Europe contrasts with the slowdown in Germany and Italy."

The commission underlined that economic issues between the U.S. and China may prolong downturn in global trade and manufacturing.

Touching on tensions in the Middle East, the commission said that they could raise oil prices.

The commission also said the uncertainty's major source is Brexit.

The eurozone/euro area or EA19 countries represents member states that use the single currency -- euro -- while the EU28 includes all member countries of the bloc.