Eurozone To Emerge From Recession In Second Half

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Eurozone is expected to emerge from recession in the second half of 2009, the European Commission said in its Autumn forecast on Tuesday. However, the economy is set to contract 4% for 2009 as a whole. A gradual recovery is expected with GDP forecast to grow 0.7% in 2010 and around 1.5% in 2011, the Brussels-based commission added. The commission raised its forecast for 2010 from 0.1% fall.

Joaquín Almunia, Commissioner for Economic and Monetary Affairs said, "The EU economy is coming out of recession. This owes much to the ambitious measures taken by governments, central banks and the EU that have not only prevented a systemic meltdown but have kick-started the recovery. However, the road ahead is a challenging one."

The commission estimates the eurozone budget deficit to rise to 6.9% of GDP in 2010. Meanwhile, the jobless rate is seen at 10.9% in 2011, up from 10.7% next year.

Eurozone is expected to emerge from recession in the second half of 2009, the European Commission said in its Autumn forecast on Tuesday. (Market News Provided by RTTNews)