EU cuts on economic forecasts over trade uncertainty

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The European Union’s executive order has trimmed its forecast for eurozone growth this year and next as uncertainty over commerce conflicts and weakness in the auto industry hold back output.

The commission reduced its outlook for growth this year at the 19 countries that use the euro to 1.2% from 1.3% in its previous forecast in February. The quote for next season was shrunk to 1.5% from 1.6 percent.

The commission said that demand alone was keeping Europe upswing moving thanks to a solid job market inflation and borrowing costs, in its seventh year.

Europe’s market depends heavily on trade and has felt the effects from slowing global trade and the trade dispute between the U.S. and also China. Automobile companies are struggling with tougher emissions regulations from the U.S. and China, as well as trade disputes and uncertainty. While Daimler earlier reported profits germany’s BMW on Tuesday reported an operating loss because of its automotive industry.

The market faces risks from”possible policy mistakes,” said Pierre Moscovici, the European commissioner for economic and fiscal affairs, taxation and customs, at a news conference at Brussels.

He said that there has been”a worrying amount of doubt” about the results of trade discussions. Europe trades together and would be sideswiped by a trade war that contributes to greater import taxes and firm.