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August 17, 2022

Almunia: The situation has improved, but the weak economy will continue

The latest interim economic forecast of European Commission made public on Monday shows there are signs for an economic recovery, thanks to strong policy interventions, but the sustainability of the recovery remains to be tested, a communiqué reads. GDP growth is set to turn positive in the second half of the year. However, the forecast for 2009 as a whole remains unchanged as the previous estimates for 2008 and the first quarter of 2009 proved weaker. GDP is expected to fall by 4 per cent in both the EU and the euro area this year. “We need to continue implementing the recovery measures announced for this year and 2010 and accelerate the repair of the financial sector to make sure banks are ready to lend at reasonable terms when companies and households resume their investment plans,” said Joaquín Almunia, Economic and Monetary Affairs Commissioner. For the year as a whole, the outlook for consumer-price inflation remains unchanged at 0.9 per cent in the EU for 2009.

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