Euro zone to face shrinking economy again in 2013

Reuters.com – 22/02/13
On Friday, the European Commission announced that the EU will not experience growth until 2014. The European Commission have reversed their position from expecting growth in 2013, to now expecting a shrink of 0.3%, meaning that the euro zone will remain in its second recession since 2009, for a year more than was originally forecast. despite the expected shrink this year, the EU is estimating a growth of 1.4% for 2014. However, the EU also forecast euro zone growth to be 0.1% in 2012, and the actual figure was -0.6%.

The European Commission has blamed the lack of growth across the 17-nation economy on tight lending conditions for companies and households, as well as record levels of joblessness. Joblessness in the euro zone is expected to reach and peak at 12.2% in 2013, approximately 19 million people. Read More