EU Commission revises down growth forecasts

Inflation is declining, but at differing speeds across the EU

'Weakness in domestic demand, in particular consumption, shows that high and still increasing consumer prices for most goods and services are taking a heavier toll than expected.' Picture: PA 

The European Commission has revised down its growth forecasts for the region to below 1% on the back of 'subdued' economic activity.

Publishing its summer economic forecast the commission expects the economy to grow by 0.8% this year, from 1% projected in the spring. Growth of 1.4% is expected next year down from a forecast of 1.7% earlier this year.