The European Commission has lowered its forecast for economic growth for the euro zone. In its spring 2016 economic forecast, it said it expects GDP to grow 1.6 percent in the euro area, 0.1 percentage point lower than the previous winter forecast. For 2017, the growth is forecast to 1.8 percent, also 0.1 percent lower. The report attributed Europe's modest growth to the slowdown of its key trading partners' performance. It says some of their supportive factors had started to wane.

Eurozone net exports are expected to remain a drag on growth in 2016 before turning neutral in 2017. Investment is to pick up next year and private consumption will be moderate as the expected rebound in inflation will reduce real income growth. However, unemployment in the eurozone will remain high. This year, the jobless rate is expected to be at 10.3 percent and then fall to 9.9 percent in 2017. Meanwhile, inflation will remain close to zero and pick up in 2017 to 1.4 percent.