Europe's growth forecasts just got a big boost -- and deflation is dead

Team europe eu waistocatsREUTERS/Russell CheyneTeam Europe fans cheer as they stand alongside the first fairway to watch the 40th Ryder Cup at Gleneagles in Scotland September 26, 2014.

The European Commission’s latest forecasts for growth and inflation are out — and for the first time in quite a while, they’re making for pleasant reading. Expectations for both are up, from anaemic levels.

Previously, the Commission had expected growth of 1.3% for the eurozone this year, and 1.9% next year — with inflation of -0.1% and 1.3% for the same years respectively.

Now it thinks the eurozone will see GDP rise by 1.5% this year and 2.1 in 2016, with inflation rates of 0.1% and 1.5%.

Greece’s forecast was slashed — with a 2.5% growth forecast for 2015 made in just February reduced to 0.5%.

Watch EU Commissioner Pierre Moscovici’s press conference here.

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