EU cuts growth forecast for eurozone.

The European Commission has lowered its 2014 eurozone GDP forecast to 1.1% from a prediction in May of 1.2%, while it expects unemployment to remain high at 12.2% and inflation to remain low at 1.5%. The EC also estimates that the eurozone's economy will shrink 0.4% this year following a decline of 0.7% in 2012. The EC projects that Germany, Belgium, Estonia and Ireland will gain momentum in 2014, although it warned that Spain, Greece, Italy and Portugal will experience much weaker growth.