FOREX ALERTS >>
DailyFX Plus Login

fundamental alert

Article

EU Commission Lowers Growth Forecasts, Raising Risks of a Recession
Monday, 03 November 2008 09:10:25 GMT  |  DailyFX Research
Delicious
Facebook

EU Commission cuts Euro-Zone 2009 growth forecast to just 0.1%, after an estimated 1.2% this year and followed by 0.9% in 2009. The sharp slowdown next year is expected to be mainly due to a marked contraction in investment activity. Employment is expected to fall by 0.4% next year and inflation is seen falling to 2.2% from 3.5% this year and followed by 2.1% in 2010. This would still leave averages above the ECB's upper limit for price stability over the next two years.

Meanwhile, EU's Almunia said financial crisis is not over yet. The EU's monetary affairs commissioner said the crisis is aggravating global imbalances and that the situation in markets remains prevarious. Speaking at the presentation of the EU Commission's updated set of forecasts Almunia also said that inflationary pressures are easing and that the eurozone's fiscal position will ldeteriorate. The commission predicts a rise in the eurozone's deficit/GDP ratio to 1.8% next year from an estimated 1.3% this year and with a further rise to 2.0% in 2009.

More Articles

Feedback Form