Europe Sees Trade Tensions With U.S. Eating Into Economic Growth

EU lowers forecasts for eurozone growth, citing ‘unfavorable external environment’

BRUSSELS—The European Union cut its 2018 eurozone growth forecast Thursday, as the bloc’s nascent trade conflict with the U.S. and political upheavals within the EU threaten to derail the common-currency area’s economic momentum.

Gross domestic product in the 19-member eurozone is set to grow 2.1% this year, the EU said in its quarterly report, cutting its 2.3% forecast from May. The rate is expected to ease to 2.0% in 2019, in line with previous expectations.

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