Extracts from the press conference by Olli Rehn on the Spring 2013/2014 economic forecasts
On 3 May 2013, Olli Rehn, Vice-President of the EC in charge of Economic and Monetary Affairs and the Euro, presented during a press conference the Spring 2013/2014 economic forecasts.
Following the recession that marked 2012, the EU economy is expected to stabilise in the first half of 2013. GDP growth is projected to turn positive gradually in the second half of the year before gaining some traction in 2014. As domestic demand is still constrained by a number of impediments that are typical of the aftermath of deep financial crises, external demand is set to be the main growth driver this year. The headwinds on private consumption and investment are expected to abate gradually, making way for a modest domestically sustained recovery next year. This forecast remains based on the assumption that continued policy implementation will prevent a renewed intensification of the sovereign-debt crisis.
Annual GDP growth this year is now forecast at -0.1% in the EU and at -0.4% in the euro area. For 2014, economic activity is projected to expand by 1.4% in the EU and 1.2 % in the euro area. PHOTO SHOTLISTLINKLINK