and the Recession continues...
According to the European Commission’s
latest analysis, the current debt crisis in Eurozone will continue as the
economy of 17 Eurozone nations will shrink by 0.3 percent this year. He commission is optimistic about 2013 and
expects a growth 1.0 percent.
Olli Rehn, the European
Commissioner for Economic and Monetary Affairs, said “recovery is in sight ….. The
economic situation remains fragile, with still large disparities across member
states”. The commission agrees that currently, the Eurozone is in “recession”. A region is believed to be
in recession if its economy shrinks for two
consecutive quarters. The official figures for EU’s economy will be
released on 15th May while analysts have predicted a contraction of 0.2 percent for Q1
2012.
Current Predictions
The overall economic conditions for
Europe, including the 17 Eurozone and 10 non-Euro nations, will remain stable with zero growth for 2012. Europe had witnessed a decrease in economic
activity in the last quarter of 2011 while the situation is believed to have continued
in the first quarter of the current year. The commission however, expects
things to start improving from the second quarter of 2012 which will eventually
lead to a growth in economy by the end of 2013.
Spain is the only European nation
which witnessed a negative forecast for
2013 as its economy is expected to decline by 0.3 percent. It will have the
highest jobless rate in Europe, 24.4 percent in 2012 and might touch 25.1 percent in 2013 as economy shrinks
further. Greece will be behind Spain
with unemployment rate of 19.7 percent
in 2012 and 19.6 percent in 2013. Its
economy will shrink by 4.7 percent this year but might stabilize by 2013.
The jobless rate is expected to be 11
percent for the Eurozone and 10.3 percent for EU in 2012-13.
Previous Prediction
The European Commission had previously
predicted that
- The Eurozone economy will grow by 0.5 percent in 2012 (November, 2011)
- The Eurozone economy will grow by 1.8 percent in 2012 (2010)
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