The EC has issued new forecasts for the eurozone’s GDP. It says the it expects a contraction of .3% in economic activity this year. In the 27 nation EU, it expects no grow at all.
The forecast could have been expected. Greece, Italy, Portugal, and Spain has already admitted the expect drops in GDP. Unemployment in these nations is high–in some cases over 20%. Germany’s economic data shows that its GDP may drop this quarter. Because of its size, the amount it weighs on the regions average GDP is huge. France may be the only large economy to show some growth.
Austerity, which takes stimulus out of national economies is now part of a number of country budgets, and that could make matters worse