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(B-roll German container port, manufacturing, retail, ecb) Financial market turmoil, a slowing U.S. economy and soaring commodity prices will curb euro zone growth more than expected this year and next, while inflation will stay above the ECB target. Thats the view of the European Commission. In its twice-yearly economic forecasts, the EC said growth in countries sharing the euro would slow to 1.7 percent this year from 2.6 percent in 2007. Inflation is tipped to accelerate to 3.2 percent in the whole of 2008 - up from just over 2 percent in 2007. Price growth is mainly being fuelled by a surge in food and oil prices which is also dampening consumer demand. (frankfurt skyline or boerse) But, an inflation slowdown in five German states in April shows its not all bad news in the euro zone, and that means less chance of a rise in interest rates by the European Central Bank. The numbers from Germany offer some of the first insights into prices in the broader euro zone, where annual...
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EC sees growth down, inflation high

(B-roll German container port, manufacturing,... (more)
Channel:PANDORA.TV Category:News Views:7
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