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3 May 2013
European Commission: EU economy to start recovering in 2H2013
FXstreet.com (Barcelona) - The European Commission has released its Spring 2013 forecast, according to which the EU economy should stabilize in the first half of the year and start recovering gradually in the second half “before gaining some traction in 2014.”
“The headwinds on private consumption and investment are expected to abate gradually, making way for a modest domestically sustained recovery next year,” the European Commission said in the report.
Eurozone GDP is expected to fall 0.4% in 2013 and it should grow by 1.2% in 2014.
As far as structural fiscal consolidation in the EU is concerned, the reduction of deficits is projected to continue in 2013, but at a slower pace than in 2012. The European Commission stresses that “the effective implementation of adjustment measures and policies to strengthen the EMU architecture remains crucial to prevent a return of stress in financial markets.”
“The headwinds on private consumption and investment are expected to abate gradually, making way for a modest domestically sustained recovery next year,” the European Commission said in the report.
Eurozone GDP is expected to fall 0.4% in 2013 and it should grow by 1.2% in 2014.
As far as structural fiscal consolidation in the EU is concerned, the reduction of deficits is projected to continue in 2013, but at a slower pace than in 2012. The European Commission stresses that “the effective implementation of adjustment measures and policies to strengthen the EMU architecture remains crucial to prevent a return of stress in financial markets.”