EU economies to grow by 2.9 pc in 2007
Friday, 10 August 2007
PARIS, Aug 9 (Xinhua): The financial rating agency Standard and Poor's (SP) is projecting that economic growth rate within the European Union will be between 2.9 per cent and 2.6 per cent in 2008, according to a statement published by the agency yesterday.
According the agency, the growth rate of the Gross Domestic Product (GDP) within the euro zone will be 2.5 per cent in 2007 and 2.4 per cent in 2008.
"This year, the economies of the European Union, particularly within the euro zone are looking set to replicate the superb economic performance that was recorded last year," despite a " modest slow-down" compared to the three previous years, according to the statement.
In 2006, the economic growth rate within the EU rose to 3 per cent and 2.7 per cent more specifically within the euro zone.
According to the agency, the prospects of inflation "does not pose any relative danger" to the European economy, despite the unprecedented rise in oil prices in recent weeks, which will cause "a temporary rise" in price indexes "during the last months of 2007."
According to the agency, spending in terms of investments by companies has been the "main underlying factor for Europe's economic growth for the last 18 months and this is expected to remain as the most dynamic element driving domestic consumption until the end of 2008."
According the agency, the growth rate of the Gross Domestic Product (GDP) within the euro zone will be 2.5 per cent in 2007 and 2.4 per cent in 2008.
"This year, the economies of the European Union, particularly within the euro zone are looking set to replicate the superb economic performance that was recorded last year," despite a " modest slow-down" compared to the three previous years, according to the statement.
In 2006, the economic growth rate within the EU rose to 3 per cent and 2.7 per cent more specifically within the euro zone.
According to the agency, the prospects of inflation "does not pose any relative danger" to the European economy, despite the unprecedented rise in oil prices in recent weeks, which will cause "a temporary rise" in price indexes "during the last months of 2007."
According to the agency, spending in terms of investments by companies has been the "main underlying factor for Europe's economic growth for the last 18 months and this is expected to remain as the most dynamic element driving domestic consumption until the end of 2008."