EU growth expected to exceed expectations

THE autumn economic forecast for the EU is the most upbeat it has been for some time, with growth for the year expected to exceed expectations at 2.1% for the eurozone and 2.5% for the EU as a whole.

However, these figures continue to be dwarfed by the statistics for Ireland, with GDP for the year predicted at 5.2% (3.7% in 2003), second only to the fastest growing new member states, Latvia, Lithuania and Estonia at between 5.7% and 6.2%.

The dangers of oil price increases and the unwinding of long-standing macroeconomic imbalances in the US were listed as the main risks to the optimistic forecast for the EU together with weak domestic demand and investor confidence.