EU cuts 2008 eurozone growth forecast to 1.3 percent
The European Commission on Wednesday cut its 2008 eurozone growth estimate to 1.3 percent from 1.7 percent previously and forecast the bloc would just barely escape a recession this year.
By Agencies |
BRUSSELS: The European Commission on Wednesday cut its 2008 eurozone growth estimate to 1.3 percent from 1.7 percent previously and forecast the bloc would just barely escape a recession this year. Buffetted by high energy prices, weak global economic activity and financial market turmoil, the eurozone is headed for a sharp slowdown from the solid 2.6 percent growth it saw last year.
After the economy of the 15 nations sharing the euro contracted 0.2 percent in the second quarter, the commission predicted it would stall in the third quarter and expand only 0.1 percent in the final three months. If the forecast bears out, it would mean that the eurozone will be spared a recession, which economists define as two consecutive quarters of contracting economic activity.
After the economy of the 15 nations sharing the euro contracted 0.2 percent in the second quarter, the commission predicted it would stall in the third quarter and expand only 0.1 percent in the final three months. If the forecast bears out, it would mean that the eurozone will be spared a recession, which economists define as two consecutive quarters of contracting economic activity.
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