The European Commission has forecast that the economy in Europe will shrink by 1.9 percent in 2009 and grow by 0.4 percent in 2010. The commission said that it hopes it will be possible “to create the conditions for a gradual recovery in the second part of 2009” for the eurozone economy.
Economy Commissioner Joaquin Almunia said that achieving such conditions will be achieved with “measures to stabilize the financial markets, the easing of monetary policy and the economic recovery plans.”
Germany has the eurozone’s largest economy and is expected to contract by 2.3 percent in 2009 before showing 0.7 percent growth in 2010. The decline in Germany’s economy is the largest single factor in the EC’s prediction of an overall decline for 2009. France, the eurozone’s second largest economy is slated to shrink by 1.8 percent in 2009 and grow by 0.3 percent in 2010.
The EC predicted that the British economy will shrink by 2.8 percent this year and will make a small recovery in 2010.
