Brussels - The eurozone economy will
contract by 0.3% in 2012 before recovering more slowly than expected
next year to expand by 0.6%, a poll conducted by the European Central
Bank (ECB) revealed on Thursday.
The data came from the Survey of
Professional Forecasters which the ECB carries out on a quarterly
basis. It was published in the Frankfurt-based bank's monthly
The previous SPF survey predicted a
0.2% contraction for eurozone gross domestic product (GDP) this year
and a 1% expansion in 2013.
Recession-inducing austerity measures
in some euro countries and "higher uncertainty" over the
resolution of the single currency's debt crisis were "the main
factors behind the downward revisions," the ECB said.
Forecasters also said that eurozone
unemployment would stay at its current high of 11.2% throughout 2012
and increase to 11.4% in 2013. Inflation was projected to fall from
2.3% to 1.7% over the same period.
The ECB said it expected "weak"
economic activity both in the second and third quarter of 2012 and
only a "very" gradual recovery afterwards. "Risks
surrounding the economic outlook for the euro area continue to be on
the downside," it noted.
The European Union statistical office,
Eurostat, is to publish GDP figures for the second quarter of the
year on Tuesday.Author: Alvise Armellini
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