This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

EU Forecasting Tepid Recovery, High Unemployment

By JUERGEN BAETZ

BRUSSELS (AP) a¿¿ Europe's economy will continue to recover through next year, but at a subdued pace that will leave unemployment near record highs, the European Commission said Tuesday.

The Commission, the EU's executive arm, said rising business confidence and strengthening domestic demand are expected to underpin the recovery as governments also slow the pace of austerity measures such as spending cuts and tax increases.

"There are increasing signs that the European economy has reached a turning point," said the EU's Commissioner for Economic and Monetary Affairs, Olli Rehn.

Growth, however, is likely to remain too weak to generate many new jobs.

The European Union's economy is expected to grow 0.5 percent over the second half of the year, leaving it flat for the whole year, and expand 1.4 percent in 2014, according to the Commission's fall forecast. Its last predictions, issued in May, had expected a drop of 0.1 percent in 2013.

The 17-country eurozone is forecast to continue its recovery from recession, from which it emerged in the second quarter. However, over 2013 as a whole, the eurozone is still expected to record a decline of 0.4 percent. For next year, the Commission is penciling in 1.1 percent growth, downward marginally from its previous forecast of 1.2 percent.

Rehn said governments' deficit reductions and reforms "have created the basis for recovery." But the forecasts show that will do little to alleviate the plight of the jobless.

Unemployment in the eurozone is expected to remain at its record high of 12.2 percent this and next year, dropping only modestly to 11.8 percent in 2015.

In the wider, 28-country EU, which includes members like Britain and Poland who don't use the euro currency, unemployment is expected to dip from 11.1 percent in 2013 to 11 percent next year.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs