European Commission likely to cut 2003 growth forecast

THE European Commission said yesterday it was likely to cut its euro zone growth forecast for 2003 from the current 1.8% due to pressures from a slower than expected pick up and geo-political uncertainty.

A cloud of worries due to a possible war with Iraq has hung over the economy of the euro zone and the wider EU, likely to force changes to Commission forecasts made late last year.

“Since our November forecasts downside risks have materialised, so I think we are looking for a downward revision but we have to come up with the new figures,” Commission Economic and Monetary Affairs spokesman Gerassimos Thomas told a news conference.