London: The European Union today said the
region's economy will climb out of recession this year, on the
back of improving financial conditions, even as the outlook
for future growth remains uncertain.
Hit hard by the financial meltdown, many of the European
economies slumped into recession. The region is also grappling
with soaring unemployment numbers.
"The EU economy will emerge from recession in the second
half of this year, although for 2009 as a whole, GDP is still
set to fall by some four per cent.
"A gradual recovery is expected with GDP forecast to grow
by 0.75 per cent in 2010 and around 1.50 per cent in 2011,"
the European Commission, the executive arm of the 27- nation
EU said.
The near-term rebound in economic activity is spurred by
better external environment and financial conditions in
addition to fiscal and monetary policy measures.
"The outlook for the EU economy as it emerges from
recession is highly uncertain, and subject to non-negligible
but broadly balanced risks... the impact of weak labour-market
conditions and constraints on investment could prove stronger
than expected," EC said in a statement.
Painting a gloomy picture for the labour market, jobless
rate is projected to touch 10.25 per cent in coming months.
Further, EU's public deficit is estimated to be 7.50 per
cent of GDP in 2010, before falling back slightly in 2011.
Bureau Report
First Published: Tuesday, November 03, 2009, 21:17