EU sees 2010 growth, but not in Ireland
Tuesday, 3 November 2009 17:37
The euro zone economy is to make a 'gradual recovery' in coming years, reaching growth of 0.7% in 2010 and 1.5% in 2011, but unemployment will stay high, the European Commission predicted today. But its autumn economic forecast said growth in the Irish economy would not resume until 2011.
'A gradual recovery is expected with gross domestic product forecast to grow by 0.7% in 2010 and around 1.5% in 2011,' the commission said, as it released its autumn economic forecast. Previously the commission had expected a 0.1% drop in euro zone GDP next year.
Unemployment, which traditionally lags growth, in the euro zone will stand at 10.7% in 2010 and climb slightly to 10.9% in 2011, Brussels forecast.
For Ireland, the commission forecast that GDP would fall by 7.5% this year, less dramatic than the 9% drop in expected in its previous forecast in May. It said the economy would shrink by another 1.4% next year, before recording 2.6% growth in 2011.
The commission forecast that unemployment here would peak at 14% next year. It also said the debt ratio would climb to 96% of GDP by 2011.
'The EU economy is coming out of recession,' EU Economic and Monetary Affairs Commission Joaquin Almunia said in a statement to coincide with the figures. 'However, the road ahead is a challenging one,' he added.
'To maintain momentum and support the sustainability of the recovery, it is essential that we fully implement all announced measures and complete the repair of the banking sector,' he said.
