The European Commission (EC) has raised its forecast for economic growth across the 19-country eurozone, despite a much gloomier outlook for Greece.

Its Spring Forecast predicted GDP growth of 1.5% for the bloc during 2015, a rise of 0.2% on its previous forecast.

The Commission said the eurozone was benefiting from a number of factors, including lower oil prices, a steady global outlook, a weaker euro and softer austerity policies.

It also predicted that inflation in the euro area would rise at an annual rate of 0.1%, suggesting that the European Central Bank's (ECB) programme of quantitative easing, which began in March, will play at least a small part in boosting prices and wider activity.

However, the report suggested the continuing row between Greece and its creditors was to take its toll on the country's growth prospects.

The forecast slashed the 2015 growth outlook for Greece to 0.5% from 2.5%.

It said that a predicted rebound of 2.5% in 2016 was based on the assumption that Athens reaches a new deal with its creditors when the extension of its current international bailout runs out at the end of June.

Greece is currently still in talks on unlocking €7.2bn (£5.3bn) of existing funds.

The anti-austerity government of Alexis Tsipras has so far failed to satisfy EU, ECB and International Monetary Fund (IMF) demands for financial reforms to release the money.

The sticking points include pension and labour market savings - areas the government wants to protect under its mandate.

The impasse has left Greece at risk of defaulting on loans this month or being unable to pay public sector wages and pensions.

A default could mean it has to leave the eurozone.

However, the most immediate concern will be the apparent failure of the Greek government to achieve a primary budget surplus - a key condition of its bailout terms.

The Commission's report forecast a deficit of 2.1% for 2015 and was likely to lead to calls among creditors for Athens to implement even deeper spending cuts.