Extracts from the press conference by Joaquín Almunia on interim economic forecasts for 2009-2010
At a press conference on 19 January 2009 in Brussels, Joaquín Almunia, Member of the EC in charge of Economic and Monetary Affairs, presented the European interim economic forecasts for 2009-2010: the slowdown sharpens but growth will come back before the end of 2009.
GDP growth in the European Union is expected to fall by 1.8 % in 2009 before recovering moderately to 0.5% in 2010. This is the result of the impact on the real economy of the intensified financial crisis, the ensuing global downturn manifested in the severe contraction of world trade and manufacturing output and, in some countries, housing-market corrections.
Government consumption and public investment, however, will provide relief. The fact that inflationary pressures have eased also contributes to private consumption. The discretionary fiscal measures announced since August 2008 will limit the contraction in GDP growth by about ¾ pp. in 2009. The severity of the economic downturn will have a significant impact on employment and public finances over the forecast horizon. SHOTLISTLINK