Press Release: Autumn forecast 2011-13: Growth at a standstill

The recovery of the EU economy has stopped. Sharply deteriorated confidence is affecting investment and consumption, weakening global growth is holding back exports, and urgent fiscal consolidation is weighing on domestic demand. GDP in the EU is now projected to stagnate until well into 2012. Growth for the whole of 2012 is forecast at about ½%. By 2013, a return to slow growth of about 1½% is expected. No real improvements are projected for labour markets, and unemployment is forecast to remain at the current high level of around 9½%. Inflation is set to return below 2% over the coming quarters. Fiscal consolidation is forecast to progress with public deficits set to decline to just above 3% by 2013 under an assumption of unchanged policies.

EUObserver, 9.11.11: IMF warns of 'lost decade' due to euro-crisis http://euobserver.com/1016/114229

BBC News, 11.11.11: Eurozone crisis: Markets calmer after volatile week http://www.bbc.co.uk/news/business-15690456

Deutsche Welle, 10.11.11: Debt crisis raises questions about eurozone's future as recession looms http://www.dw-world.de/dw/article/0,,15524084,00.html

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