(Reuters) The European Commission said on Monday that uncertainty about U.S. policies, Brexit and elections in Germany and France would take their toll on the euro zone economy this year.
It forecast euro zone economic growth to lose some speed this year before rebounding in 2018. It saw a sharp growth drop ahead in non-euro zone and EU-leaver Britain.
The British economy will nearly halve its expansion by 2018, the European Union executive said in a broad series of economic forecasts.
Growth in the 19 countries sharing the euro would slow to 1.6 percent this year from 1.7 percent in 2016, but would gain speed in 2018 when the bloc's gross domestic product (GDP) is expected to increase by 1.8 percent.
Germany, the bloc's leading economy by far, is expected to see its GDP growth slow to 1.6 percent this year from 1.9 percent in 2016. Growth will accelerate from 1.2 percent to 1.4 percent in France, and remain stable at 0.9 percent in Italy.