Press Release: EU interim forecast: recovery is in progress but remains fragile

The EU economy is, in February 2010, gradually recovering, whilst still facing headwinds. Real GDP started to grow again in the third quarter of 2009, ending the longest and deepest recession in the EU's history. The exceptional crisis measures put in place in the EU played a major role in turning the economy around. However, in line with the autumn 2009 forecast, growth eased in the fourth quarter, as the impact of some temporary factors started to fade. According to the current update, the economic outlook for the EU remains broadly unchanged. GDP is projected to grow at 0.7% in both the EU and the euro area in 2010. The inflation projections also remain largely unchanged at 1.4% and 1.1% in the EU and the euro area, respectively. Uncertainty surrounding these projections remains rife, as recent developments in financial markets illustrate well.