The European Union is predicting the bloc's economic recovery should continue at "a modest pace next year" as it will remain hampered by insufficient investment and heavy debt.

In an official forecast, European Commissioner Pierre Moscovici on Thursday warned of uneven improvements across the 28 member states but said that for 2016, the EU economies will "see growth rising and unemployment and fiscal deficits falling."

He noted the global economic outlook remains uncertain, meaning EU nations should not to let up in their efforts to reform their economies.

Greece, which received a new 86 billion euro, three-year bailout, is expected to see its economy shrink by 1.4 percent this year and 1.3 percent in 2016, before seeing growth of 2.7 percent the next year.