Trump, Brexit elevating economic risks for euro area: European Commission

Brussels

BREXIT and the election of Donald Trump are heightening economic risks for the euro area, the European Commission said, as it warned of continued fallout from the two political events that dominated 2016.

In its first set of economic forecasts compiled since Mr Trump's election victory and with the British government gearing up to officially trigger its EU exit, the Brussels-based commission said on Monday that the recovery is "assailed by risks". Gross domestic product in the 19-nation region is expected to grow 1.6 per cent this year, slower than the 1.7 per cent expansion last year.