Eurozone recession persists in 2013

Eurozone recession persists in 2013

The economies of 17 European countries that use the Euro are set to remain deeply into recession in 2013, but should start to show signs of recovery in the first half of the year, reports from Brussels say.

Brussels, the capital of Belgium, is the headquarters of the European Union.

This grim picture confirms the forecast of Spanish employment Markit whose closely-watched survey in December said that there were few signs of the Eurozone leaving recession any time soon.

The EU Commission warned state members to watch carefully their public spending, a warning analysts believe will increase the state of austerity which is already suffocating resources-stressed populations.

The EU Commission said last week that the Eurozone will be contracted by 0.3% in 2013, a far cry from its November forecast of 0.1% growth.

However, Brussels said the first half of 2013 will see Eurozone coming out of the bushes, and looking a little well, with a 0.7% growth forecast for the last quarter of 2013 compared to the same period last year.

Germany economy, which sank by 0.6% in the final quarter 2012, will grow by 0.5% this year, the Commission said.

The news in France are not good as its economy will only see a mere  0.1% growth, while Italy and Spain economies will further fall by 1% and 1.4%, respectively, according to reports from Brussels.

Recession is defined by economists as two consecutive quarters of negative economic growth.

 

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