The European Union Economic and Monetary Commission released their 2012 forecasts for the 17-nation currency. The expectation is for the Eurozone to contract 0.3 percent. This is a revised forecast from their November figures of 0.5 percent growth for 2012.
Spanish and Italian economies are projected to contract over 1 percent and will drag EU over its first Europe wide contraction since 2009. The regulators tried to install some optimism: “Financial markets remain still rather fragile, but there are also signs of stabilization,” EU Commissioner Oli Rehn said earlier today.
Rampant unemployment and housing bubbles aftershocks will make all the PIGS governments struggle with the fiscal austerity measures to avoid a default or at the very least qualify for bailout aid from the stronger economies.
Quick outlook for the most prominent Eurozone countries in 2012:
Economies to contract
- Greece 4.3 percent
- Portugal 3.3 percent
- Spain 1 percent
- Italy 1.3 percent
Economies to grow
- Ireland 0.5 percent
- Germany 0.6 percent
- France 0.4 percent
You can find the full report in the European Commission's website
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