BUSINESS

EU anticipates slightly higher eurozone growth this year despite a Greek downgrade

05/05/2015 05:01 EDT | Updated 05/04/2016 05:12 EDT
BRUSSELS - The European Union has raised its forecast for economic growth across the 19-country eurozone despite a much gloomier outlook for Greece.

In its spring forecast, the EU's executive branch said Tuesday it's predicting 1.5 per cent growth for the eurozone in 2015, up 0.2 percentage point from the previous forecast in February.

It says the eurozone is benefiting from a number of factors, including lower oil prices, a steady global outlook, the weaker euro and less stringent budget policies.

One country seemingly going the other way is Greece, which is struggling to agree on a package of economic reforms with European creditors to unlock bailout funds.

The uncertainty has weighed on the outlook, with the European Commission now anticipating 0.5 per cent growth this year, down 2 percentages points in three months.