The eurozone economy may expand by just 1.6pc next year, according to a group of independent economists. The European Economic Network (Euren), a group of six European economic institutes, said today it expected the eurozone economy to grow 0.8pc this year, rising to 1.6pc in 2003. The 2003 forecast is lower than the European Commission's forecast for eurozone growth of 1.8pc next year. The Commission has maintained this forecast despite also warning that the eurozone could contract in the first quarter of 2003. Euren also said that it expects eurozone inflation to fall to 1.8pc in 2003 from 2.4pc this year. The European Central Bank, which cut interest rates by 0.50pc last week in a bid to boost economic activity, also expects price pressures to ease next year. Meanwhile, German economic think tank IFW has cut its 2003 GDP growth forecast for Germany to 1.0pc from 1.8pc. The German government is forecasting growth of 1.5pc for 2003. The institute said growth will slow due to higher tax burdens and criticised the government for the lack of reform in the labour market. //www.fxcentre.com