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Europe's growth forecasts just got a big boost - and deflation is dead

Mike BirdMay 5, 2015, 14:40 IST

The European Commission's latest forecasts for growth and inflation are out - and for the first time in quite a while, they're making for pleasant reading. Expectations for both are up, from anaemic levels.

Previously, the Commission had expected growth of 1.3% for the eurozone this year, and 1.9% next year - with inflation of -0.1% and 1.3% for the same years respectively.

Now it thinks the eurozone will see GDP rise by 1.5% this year and 2.1 in 2016, with inflation rates of 0.1% and 1.5%.

Greece's forecast was slashed - with a 2.5% growth forecast for 2015 made in just February reduced to 0.5%.

Watch EU Commissioner Pierre Moscovici's press conference here.

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