Eurozone economic growth will be stronger than previously expected this year thanks to cheaper oil, a weaker euro, stable global growth and supportive fiscal and monetary policies, the European Commission said yesterday.

In its quarterly economic forecasts of main economic indicators for the whole 28-nation European Union and the 19 countries sharing the euro, the EU executive arm also forecast a pick-up in inflation later this year and declining unemployment.

The Commission expects eurozone economic growth to accelerate to 1.5 per cent in 2015 from 1.3 per cent forecast three months ago. It kept unchanged its previous forecast of 1.9 per cent growth for next year.

“The European economy is enjoying its brightest spring in several years, with the upturn supported by both external factors and policy measures that are beginning to bear fruit,” said Pierre Moscovici, Commissioner for Economic and Financial Affairs, Taxation and Customs.

As the economy accelerates, so does eurozone inflation – the Commission raised its forecast for consumer price growth this year to 0.1 per cent from a price fall of 0.1 per cent forecast three months ago. Next year consumer prices are likely to rise 1.5 per cent rather than 1.3 per cent expected earlier.

Stronger growth will also help bring down unemployment more quickly – the Commission now expects an unemployment rate in the eurozone of 11.0 per cent this year and 10.5 per cent next year, down from 11.2 per cent and 10.6 per cent respectively projected earlier.

The eurozone’s aggregated government deficit will also be smaller than previously expected at 2.0 per cent rather than 2.2 per cent this year and at 1.7 per cent in 2016, rather than the previously forecast 1.9 per cent.

Eurozone debt has peaked last year at 94.2 per cent of GDP, the Commission said, and will now fall to 94.0 per cent this year and 92.5 per cent in 2016. Three months ago the EU executive arm expected debt would only peak this year at 94.4 per cent.