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Euro zone in recession until spring 2012

Euro zone set for weak growth later this year
Euro zone set for weak growth later this year

The euro zone will return to modest growth in the spring of 2012, official institutes from France, Germany and Italy forecast today.

The euro zone entered a short recession in late 2011.

The three statistics agencies offer a joint assessment of the euro zone economy every quarter.

They confirmed an earlier outlook of a 0.2% contraction in the first quarter of 2012 after a 0.3% contraction in the final quarter of 2011.

 

For the third quarter of this year, the three institutes forecast stagnation, followed by a slim 0.1% expansion in the fourth quarter.

"Activity will gain slowly," the institutes said, "but growth will stay weak."