EU forecasts: Eurozone growth to slow this year, inflation subdued

Eurozone growth will be slower than previously expected with subdued inflation this year, the European Commission said in its economic forecasts on Tuesday, warning of high external and internal risks to the bloc's economy.

The gross domestic product (GDP) of the 19-country currency area is predicted to expand 1.6 percent this year, less than the 1.7 percent growth of 2015 and also 0.1 percentage points below its February forecast, the EU executive said.

Next year the GDP is projected to expand 1.8 percent, down from a 1.9 percent estimate three months ago.

Consumer prices are also expected to increase by less than previously estimated. They are now seen up 0.2 percent this year, significantly below the 0.5 percent increase forecast in February by the Commission.

The figure is an improvement compared to flat inflation in 2015, but is still far from the...