European Commission’s economic forecasts published on Friday suggest that in 2013 we will see a gradual recovery in economic activity in the Eurozone. It should initially be driven by an improvement in external demand and later by an increase in domestic investment and consumption.
As far as Greece is concerned, the European Commission saw it beginning to recover at the end of 2013, thanks to its strengthened economic adjustment program, and growing by 0.6 in 2014. Still, the GDP estimate for this year was revised from -4.2% to -4.4%.
EU Commission expects unemployment to reach 27% in 2013 and drop down to 25.7% in 2014. (capital, forexstreet)
PS hopefully EU Commission did not apply wrong fiscal multipliers as the IMF did and that it included self-employed and part-timers in its unemployment forecasts.
Not to mention that since 2010, every year we hear that economy would recovery …next year.
The EC doesn’t use complicated formulas with multipliers etc. The formula is very, very simple. Here it is
Y= X + 1
Whereby Y is the year of expected recovery and X is the current year. So far, they have been proven to be right on the money, with no embarrasing climb down predicted for the foreseeable future.