EU cuts 2017 growth outlook after Brexit

        Brussels. The European Union yesterday edged up its eurozone growth forecast for this year but trimmed it for 2017, warning that the economy faced new challenges due to Brexit and rising inequality.

Brussels also nearly halved its economic growth outlook for Britain itself next year due to uncertainty over the country’s vote to leave the bloc.

Pointing to increased global risks for the 19-country single currency area as shown by the shock victory of Donald Trump in the United States, the European Commission said economic growth this year would reach a modest 1.7 percent.

The commission also said that eurozone growth would slow to 1.5 per cent growth next year, as the negative effects of Britain’s looming divorce from the EU began to be felt more deeply.

“In these volatile and uncertain times, no effort must be spared to safeguard and strengthen this recovery –- and ensure that all sections of society feel its benefits,” said EU Economics Affairs Commissioner Pierre Moscovici.

Asked about the impact of the Trump vote in the US, Moscovici stressed the need to boost economic recovery.

“The frustration expressed in the US clearly echoes that of European voters,” Moscovivi said.

“Many of our citizens feel excluded from the economic recovery and many of them feel disconnected from government,” he said. (AFP)