The European Union (EU) Commission released it economic growth and inflation forecasts for the Eurozone on Thursday. Eurozone's economic growth for 2016 was cut to 1.7%, down from the previous estimate of 1.7%. Eurozone's economic growth for 2017 remained unchanged at 1.9%.

The EU Commission noted that there are risks to the outlook from the slowdown in emerging countries and possible further interest rate hikes in the U.S.

"Europe's moderate growth is facing increasing headwinds, from slower growth in emerging markets such as China, to weak global trade and geopolitical tensions in Europe's neighbourhood," EU Commission Vice President Valdis Dombrovskis said.

German economic growth for 2016 and 2017 was lowered to 1.8% from the previous estimate of 1.9%.

The European Commission upgraded the Greek GDP forecast for 2016 to -0.8% from the previous estimate of -1.3%. Greece's economy is expected to expand 2.7% in 2017.

The EU commission lowered its 2016 inflation forecast for the Eurozone to 0.5% from 1.0%. Inflation is expected to be 1.5% in 2017.

According to the EU commission, inflation was driven by further drop in oil prices, but it was only temporary.