Press conference by Olli Rehn, Vice-President of the EC, on the interim economic forecast
Olli Rehn, Vice-President of the EC in charge of Economic and Monetary Affairs and the Euro, gave a press conference on the interim economic forecast. The unexpected stalling of the recovery in late 2011 was set to extend into the first two quarters of the year 2012. However, modest growth was predicted to return in the second half of the year. On an annual basis, real Gross domestic product (GDP) in 2012 was forecast to remain unchanged in the EU (0.0%) and to contract by 0.3% in the euro area.
Uncertainty nevertheless remained high and developments across countries were uneven. The inflation forecast for 2012 had been revised slightly upwards compared with the autumn, due to persistently high energy prices and increased in indirect taxes. It stood at 2.3% in the EU and 2.1% in the euro area.
Olli Rehn, in front of the press Ref:P-020403