Eurozone to contract by 0.3 per cent
Friday 24 February 2012
The economy of the eurozone will contract in 2012, according to the latest forecast from the European Commission.
The executive body of the European Union says that the 17 members of the currency bloc will shrink by 0.3 per cent in 2012, having forecast an expansion of 0.5 per cent in November.
The Commission expects the eurozone's most troubled economies to be hit the hardest by the recession. Greece is now pencilled in for a 4.4 per cent contraction over the year, worse than the 2.8 per cent shrinkage foreseen in November. Portugal is expected to slump by 3.3 per cent, more than the 3 per cent contraction expected five months ago. Spain is now expected to shrink by 1 per cent, rather than 0.7 per cent. The Italian economy is expected to fall by 1.3 per cent, dramatically more than previous 0.1 per cent.
The forecast for the stronger states of the eurozone has also been downgraded, although considerably less. The French economy is expected to post growth of 0.4 per cent over the year, less than the 0.6 per cent seen in November. Growth of 0.6 per cent is forecast for Germany, down from 0.8 per cent. The Dutch economy is, however, expected to be hit especially hard by the slowdown, with a contraction of 0.9 per cent forecast, down from an earlier prediction of 0.5 per cent growth.
Outside the eurozone, Britain's economic forecast is unchanged at 0.6 per cent growth.
Royal Marine Sgt Alexander Blackman jailed for life for murder of Afghan insurgent
Ja Rule forced to deny leaving wife for prison cell mate
Nelson Mandela: 11 inspirational quotes to live your life by
Nelson Mandela: From 'terrorist' to tea with the Queen
Crash pilot who threatened Ukip leader Nigel Farage found dead
- 1 Cameron's freebie to apartheid South Africa
- 2 Is this the scariest advert ever? Japanese tyre commercial comes with its own disclaimer and health warning
- 3 Sherlock series 3: Benedict Cumberbatch and Martin Freeman provide teasers for the biggest comeback in British television
- 4 A forgotten episode in Russian history leaves links with the Philippines
- 5 People will try to reduce Mandela to a lilting reggae tune about ‘love’. They will fail
- < Previous
- Next >
iJobs Money & Business
£80000 - £100000 per annum + benefits + bonus: Harrington Starr: Project Manag...
£50000 - £60000 per annum + benefits + bonus: Harrington Starr: Business Analy...
£30000 - £40000 per annum + Bonus and Benefits: Harrington Starr: A global Con...
£150 - £250 per day: Cornwallis Elt : iPhone Rollout- Blackberry Enginee...