Eurozone set for 2012 recession
The European Central Bank’s survey of professional forecasters predicts economic contraction of 0.1 per cent in 2012 for the Eurozone, followed by growth of 1.1 per cent in 2013. Previous forecasts had expected to see growth of 0.1 per cent this year and 1.2 per cent in 2013. The average forecaster now expects to see growth of 1.8 per cent in 2016 – still relatively weak. Unemployment is expected to remain high at 10.8 per cent through 2012 and 2013, and still stand at 8.8 per cent in 2016, while inflation is forecast to stay on target at 1.9 per cent in 2012, 1.7 per cent in 2013 and two per cent into 2016.