The European Union Economic and Monetary Commission released their 2012 forecasts for the 17-nation currency. The expectation is for the Eurozone to contract 0.3 percent. This is a revised forecast from their November figures of 0.5 percent growth for 2012.
Spanish and Italian economies are projected to contract over 1 percent and will drag EU over its firstÃ‚Â Europe wide contraction since 2009. The regulators tried to install some optimism: Ã¢â‚¬Å“Financial markets remain still rather fragile, but there are also signs of stabilization,Ã¢â‚¬Â EU Commissioner Oli Rehn said earlier today.
Rampant unemployment and housing bubbles aftershocks will make all the PIGS governments struggle with the fiscal austerity measures to avoid a default or at the very least qualify for bailout aid from the stronger economies.
Quick outlook for the most prominent Eurozone countries in 2012:
Economies to contract
– Greece 4.3 percent
– Portugal 3.3 percent
– Spain 1 percent
– Italy 1.3 percent
Economies to grow
– Ireland 0.5 percent
– Germany 0.6 percent
– France 0.4 percent
You can find the full report in the European Commission’s website
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