Euro-zone economies to grow faster than predicted
The European Commission has raised its forecast for economic growth and cut its inflation prediction for the euro-zone in 2007.
The original prediction of 2.1% growth the EC made in November has been upwardly adjusted to 2.4% on the back of low unemployment and high confidence.
EU monetary affairs commissioner Joaquin Almunia said in the report: "The European economy has done remarkably well in 2006 and is set to continue to grow briskly in 2007." He added that this "reflects and increased resilience of the European economy".
The EC is not alone in revising its predictions; a number of banks have forecast higher growth after the rate nearly doubled from the third (0.5%) to the fourth (0.9%) quarter in 2006, Bloomberg reports.
Dario Perkins, an economist at ABN Amro, said: "Things are looking pretty good for the European economy. The global economy is still supporting growth and the slowdown in the US hasn't really affected Europe because it was concentrated in housing and car production."
The growing economy and stable currency is good news for those looking to invest in euro-zone countries such as Spain and Portugal.
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