Economy has lost momentum during a tough year, EU commission says and warns of risk from Mideast

By DAVID McHUGH
AP Business Writer

FRANKFURT, Germany (AP) — The European Union’s executive commission has lowered growth its expectations for this year and next, saying the economy “has lost momentum” as inflation discourages consumers and higher interest rates deter borrowing for purchases and investment. The outlook was lowered to 0.6% from 0.8% for the 20 countries that use the euro currency, and to 1.2% from 1.3% for next year. The outlook is exposed to risks of trouble spreading from Russia’s ongoing war against Ukraine and the Israel-Hamas war in Gaza. So far, the conflict in Gaza has not interfered with oil supplies from Mideast producers such as Saudi Arabia and the United Arab Emirates while Europe’s underground natural gas storage facilities are full ahead of the winter heating season.