Extracts from the press conference by Olli Rehn on the interim economic forecast
On 23 February 2012, Olli Rehn, Vice-President of the EC in charge of Economic and Monetary Affairs and the Euro, presented the interim forecast which shows euro area in mild recession with signs of stabilisation.
The unexpected stalling of the recovery in late 2011 is set to extend into the first two quarters of 2012. However, modest growth is predicted to return in the second half of the year. On an annual basis, real GDP in 2012 is now forecast to remain unchanged in the EU (0.0%) and to contract by 0.3% in the euro area. Uncertainty remains high and developments across countries are uneven. The inflation forecast for 2012 has been revised slightly upwards compared with the autumn, due to persistently high energy prices and increases in indirect taxes. It now stands at 2.3% in the EU and 2.1% in the euro area. SHOTLIST