Press conference by Olli Rehn, Member of the EC, on the spring economic forecasts for 2012-2013
Olli Rehn, Vice-President of the EC in charge of Economic and Monetary Affairs and the Euro, gave a press conference on the spring economic forecasts for 2012-2013.
Following the output contraction in late 2011, the EU economy was estimated to be in a mild recession. While uncertainty about economic and financial prospects remained high, strong policy actions and major advancements in the EU institutional framework had brought about an easing of financial market tensions in the beginning of 2012 and a tentative stabilisation of confidence, expected to further strengthen over the forecast period.
For 2013, growth was forecast at 1.3% in the EU and 1.0% in the euro area. Unemployment was expected to remain high at 10% in the EU and 11% in the euro area over the forecast period. Inflation was set to moderate gradually as the impact of higher oil prices and tax increases faded away. Fiscal consolidation was forecast to progress, with public deficits in 2013 declining to 3.3% in the EU and just below 3% in the euro area.
The economic situation differed considerably across Member States, also in view of the ongoing adjustment to the large disparities in external positions and structural conditions that have come to the fore over the past years.
Olli Rehn at the podium Ref:P-020877