The EU raised Thursday its eurozone growth forecast, saying the recovery was gaining strength despite the elevated uncertainties of Brexit and the protectionist policies of US President Donald Trump. The forecast said the positive outlook came in large part thanks to an improving global economy, with the United States and China helping lift Europe. But the European Commission warned that the "uncertainty surrounding the economic outlook remains elevated".

The 19-country eurozone will grow by 1.7 percent in 2017 followed by 1.8 percent in 2018, the Commission said in its spring economic forecasts. That is compared with estimates made in February of 1.6 percent and 1.8 percent, respectively. "It is good news ... that the high uncertainty that has characterised the past twelve months may be starting to ease. But the euro area recovery in jobs and investment remains uneven," EU Economy Commissioner Pierre Moscovici said.

Growth in Spain would lead the eurozone main economies with 2.8 percent in 2017, a half point increase over the previous forecasts, the EU said. Souring the mood, bailed-out Greece, which swung out of recession last year, saw its growth forecast cut sharply to 2.1 percent in 2017 and 2.5 percent in 2018. The EU said the 28-nation bloc as a whole would grow by 1.9 percent in both 2017 and 2018. The British economy will expand by 1.8 percent in 2017, up from the 1.5 percent forecast three months ago, it predicted. The Commission said unemployment in the eurozone would continue to fall in 2017, reaching 9.4 percent after ending 2016 at 10 percent.

Copyright Agence France-Presse, 2017