EU cuts economic forecasts

The European Union cut its economic forecasts Friday, saying rising oil prices and turmoil in financial markets, stemming from the subprime mortgage debacle in the United States, will significantly cut growth over the next two years.

The European Commission forecast that growth in the 27-nation bloc will slow to 2.4 percent in both 2008 and 2009, from 2.9 percent in 2007. In the euro zone - the area of 13 nations using the euro as a common currency - growth will slow to 2.2 percent in 2008 and even further to 2.1 percent in 2009, down from 2.6 percent in 2007, according to the forecast.
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Source :cnn money