EU cuts 2008 growth forecast

The EU Commission cut its growth forecast for the euro currency zone to 1.8% this year, saying the global economy looks unusually uncertain.

Inflation will likely stay well above the recommended guideline of just under 2% with high energy and food prices pushing it to 2.6% in the euro area, it said.

The EU executive’s last forecast was for the 15-nation economy to speed up by 2.2% in the euro area and 2.4% in the 27-nation European Union cash advances. EU growth should now slow to 2% this year, it said. 

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