EU growth rates outpace the US

THE annual growth forecast for the EU has been upgraded by the European Commission to 2.3% following better than expected results during the first half of this year and despite the 80% increase in oil prices over the past 18 months.

The growth, the best since 2000, is based on strong demand from within the EU with growing private investment and on good consumer growth so it should withstand any slowing down of the US economy.

For the first time since 2001, the EU’s growth outpaced that of the US, but maintaining this positive trend depends on business and industry not passing on the full effects of oil increases and on moderate wage increases. Outlining his analysis Economic and Monetary Affairs Commissioner, Joaquin Almunia, said reforms undertaken by member countries were showing results in increased growth.