EU lowers forcast, predicts a mild recession for 2012
The European Union has lowered its growth forecast in a move that places more doubt on Europe’s recovery.
The New York Times reports that the European Commission’s forecast now predicts that the euro zone will likely shrink by 0.3 percent in 2012, down from the previous growth estimate of 0.5 percent for the year last November.
“Pushing the projections down were a contraction of 1.3 percent foreseen for Italy and 1 percent in Spain — two of the euro-zone’s biggest economies, which are also beset by debt troubles. Of the three small countries that have received international bailouts, Ireland was expected to see slight growth, while Greece and Portugal were projected to suffer steep contractions,” says the Times.