EU raises its growth forecast for 2014

The European Commission (EC) has raised its growth forecast for the European Union (EU), saying that "the recovery has taken hold". The 26 nations of the EU are forecast to grow by 1.6 per cent for 2014, a touch higher than the forecast of 1.5 per cent made in late February. The growth forecast for the 18-nation eurozone remains at 1.2 per cent for 2014. The Commission expects the jobs market to continue to improve, forecasting EU unemployment will fall to 10.1 per cent this year. In March, the rate was 10.5 per cent.  Unemployment in the euro-area is expected to fall to 11.4 per cent, from 11.8 per cent in March. Siim Kallas, the Commission's vice-president, said: "The recovery has now taken hold. Deficits have declined, investment is rebounding and, importantly, the employment situation has started improving, according to a news agency.