The European Commission's 1.6 per cent growth forecast for the euro zone for this year will likely be revised down in November, EU Monetary Commissioner Joaquin Almunia said today.
Mr Almunia said high oil prices would clearly have an impact as prices were now around $65 per barrel compared with the $47-$48 per barrel used in the forecast made in April.
He said that growth in developing economies such as China and India was aiding EU exports, that strong growth in the 10 new EU member states was also helping, and that the euro zone economy would accelerate towards the end of the year.
"I hope when we make public our next forecast in November we will look for a growth rate below this 1.6 per cent for the euro zone but with a good evolution and with a positive impact looking to next year," Mr Almunia said.
He did not say by how much the target would be missed.