High oil prices to hit 2005 growth says EC report

High oil prices will dampen economic growth next year, according to a European Commission report published Tuesday 26 October.

In its "autumn forecasts", Brussels reduced its 2005 growth expectations from 2.3 percent (its forecast in Spring) to 2.0 percent due to a "sharp" rise in oil prices.

The report follows concerns of European Central Bank President Jean-Claude Trichet who said Monday in the European Parliament, "If oil prices were to remain high or even increase further, they could dampe

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