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EC raises growth forecasts as oil prices dip

GDP in euro area will rise by 1.3% in 2015 and 1.9% next year, it says

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Mr Draghi has warned that the slump in the cost of oil could lead to a deflationary spiral of falling prices and households postponing spending.

Frankfurt

THE European Commission raised its euro-area growth forecasts and cut its inflation outlook as cheaper energy proves both a blessing and a curse for the currency bloc's economy.

Gross domestic product (GDP) in the euro area will rise by 1.3 per cent in 2015 and 1.9 per