BRUSSELS (AP) — The European Union’s executive branch expects the 17-nation eurozone economy to suffer a modest recession this year despite recent signs of stabilisation, particularly in financial markets.
In its latest projections Thursday, the European Commission’s forecast forecasts a 0.3 per cent contraction in the eurozone economy, with Greece leading the way downwards with a massive 4.4 per cent decline.
In its last forecast in November, the Commission was predicting a 0.5 per cent expansion in the eurozone.
The difference this time is that the Commission now expects Belgium, Spain, Italy, Cyprus, the Netherlands and Slovenia to suffer economic contraction, alongside Greece and Portugal.
The wider 27-nation EU, which includes non-euro countries like Britain and Sweden, is expected to see economic performace remain unchanged this year.