European Commission Predicts Flatline Growth for EU in 2013

In line to EU comments yesterday about Spanish growth the commission has now released lower forecasts for the eurozone. The EU is only expected to grow by 0.1 percent in 2013, which is an improvement of the 0.4 percent contraction forecasted earlier this year.

Real positive growth will only be on the table until 2014, with figures expected around 1.4 percent if all the reforms and agreements are reached. As it happened with Spain there will be some disappointments after local governments were proclaiming higher expected figures.

Here is a list of the major economies and their expected growth in 2013:

Germany 0.8% in 2013 (German forecast is 1.0%)
France 0.4% in 2013 (French forecast is 0.8%)
Italy -0.5% in 2013 (Italy forecast is -0.2%)
Spain -1.4% in 2013 (Spain forecast -0.5%)
Greece -4.2% in 2013 (Greece forecast -4.5%)

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